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The Wall Street Journal November 14 2017

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
DJIA 23439.70 À 17.49 0.1%
NASDAQ 6757.60 À 0.1%
WSJ.com
TUESDAY, NOVEMBER 14, 2017 ~ VOL. CCLXX NO. 115
* * * * *
STOXX 600 386.13 g 0.7%
10-YR. TREAS. g 1/32 , yield 2.400%
OIL $56.76 À $0.02
GOLD $1,277.30 À $4.90
Powerful Earthquake Near Iran-Iraq Border Kills More Than 400
What’s
News
Business & Finance
ozens of banks received
the biggest signal yet that
they may soon be freed from
some of the most onerous
rules put in place after the financial crisis, as senators
from both parties agreed to a
plan to ease regulations. A1
D
Qualcomm rejected
Broadcom’s $105 billion offer, setting up a showdown
between the chip makers. B1
Google faces a Missouri
probe into whether the internet giant’s business practices violate state laws. B1
AB InBev is shuffling its
North American leadership
as the brewer struggles to
end a slump in Bud sales. B1
Venezuela was ruled by
S&P to be in default on a
missed interest payment, further pressuring the nation. A10
SoftBank’s bid to take a
stake of up to $10 billion in
Uber marks a bet on the future of the car industry. B4
Brookfield confirmed it
made a $14.8 billion offer to
buy the 66% of mall owner
GGP it doesn’t already own. B3
The Dow edged up 17.49
points to 23439.70 following a
flurry of corporate news. B10
World-Wide
GOP leaders stepped up
efforts to block Moore
from taking a Senate seat,
as new allegations of sexual misconduct surfaced. A3
Donald Trump Jr. was in
contact with WikiLeaks during the 2016 campaign, according to an email obtained
by The Wall Street Journal. A4
Treasury chief Mnuchin
said the Trump administration wouldn’t support tax
legislation with a corporate
tax rate of more than 20%. A6
Trump nominated Alex
Azar, an ex-Lilly executive
who has criticized the health
law, to be HHS secretary. A2
Rescue efforts were under way after a strong
earthquake near the border
between Iraq and Iran killed
at least 414 people. A10
The Supreme Court
agreed to hear a challenge by
antiabortion pregnancy centers to a California law. A4
The Trump administration
can implement part of a
travel ban while litigation
over the policy continues,
an appeals court said. A4
Trump and Philippine
leader Duterte found common
ground during their meeting,
but skirted difficult issues. A8
Nearly half of U.S. adults
have high blood pressure, according to new guidelines that
lower the risk threshold. A3
The FDA approved a digital drug, an antipsychotic
pill that signals smartphones
once it reaches the gut. B4
Journal Report
Nuclear power’s future in
the U.S. Energy, R1-R6
CONTENTS
Business News.. B3,5
Capital Journal...... A4
Crossword.............. A17
Heard on Street.. B11
Journal Report.. R1-6
Life & Arts....... A15-17
Markets............. B10-11
Opinion.............. A19-21
Sports....................... A18
Technology............... B4
U.S. News............. A2-6
Weather................... A17
World News..... A8-13
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
YEN 113.62
Senators
Support
Rollback
Of Bank
Oversight
By Andrew Ackerman,
Ryan Tracy
and Christina Rexrode
TRAGIC TOLL: Iranian soldiers on Monday carried the body of a victim of the temblor, which struck the area late Sunday. ‘The magnitude
of the disaster is huge,’ Esmail Najjar, the head of Iran’s National Disaster Management Organization, said on state television. A10
GE Takes Knife to Dividend
Industrial giant cuts
payout by half and
warns of ‘reset’ year;
shares hit 5-year low
BY THOMAS GRYTA
General Electric Co.’s new
leader outlined a restructuring
plan that will slash the annual
dividend by $4 billion and
streamline the industrial giant’s operations, but warned
investors it will take years to
fix some of the company’s businesses and for profits to begin
to improve.
GE Chief Executive John
Flannery lowered earnings targets for 2018 and cautioned
that, even in 2019, conditions
will be difficult, especially in
the company’s biggest unit, GE
Power. He laid out a future for
three core markets—power,
aviation and health care—and
said the company would look
to shed smaller divisions such
as transportation and lighting.
GE is “going to be a smaller
Core Focus
General Electric outlined a restructuring plan under which it will
focus on the power, aviation and health-care markets and may
shed noncore businesses.
Core segments 2017 nine-month revenue
2018 outlook*
Power
Aviation
$26.6 billion
down 10%
$20.2
up 7-10%
$13.7
Healthcare
up 3%
up 7-10%
$7.4
Renewable energy
Non-core segments
$11.5 billion
Oil & gas
Transportation
Lighting
$3.2
down 15%
up 5%
$1.4
*Estimates for organic revenue growth
Source: the company
business, a simpler business”
but 2018 is going to be “a reset
year,” he told investors at a
meeting Monday. The presentation followed a strategic review
after the GE veteran took over
the top job on Aug. 1.
up 2-5%
THE WALL STREET JOURNAL.
The moves stop short of a
breakup or more-radical restructuring of the 125-year-old
company that some analysts
had called for, though Mr. Flannery left open the possibility of
further portfolio changes. “It is
Hobby Lobby Scion Amassed
Relics—Now They’re Tainted
for the market to decide,” the
new CEO said Monday. “Unless
I show results, it isn’t going to
matter.”
Shares of GE tumbled after
his presentation, dropping 7.2%
to end Monday’s trading session at $19.02, its lowest close
in five years and its worst single-day drop since the financial
crisis. The stock has declined
40% this year, missing out on a
broad stock-market rally.
Some investors said they
hoped for more-aggressive action and a shorter timeline.
“They didn’t lay out as
much as we were expecting to
see,” said Janna Sampson, cochief investment officer of OakBrook Investments, which
owned 1.1 million shares at the
end of September. She said she
was expecting a dividend cut
but was looking for the company to make a bigger move to
stimulate the share price. She
said she is concerned that the
Please see GE page A13
Heard on the Street: GE light
bulb finally goes on.............. B11
The bipartisan Senate
agreement released Monday
would relieve small and regional lenders from a number
of restrictions meant to limit
the damage firms could cause
to the economy in the event of
another crisis.
In what would be the biggest step to ease the financial
rule book since Republicans
took control of Washington,
the proposal could cut to 12
from 38 the number of banks
subject to heightened Federal
Reserve oversight by raising a
key regulatory threshold to
$250 billion in assets from $50
billion. The legislation also
would ease red tape affecting
credit unions and community
banks, allowing them to lend
more, supporters said.
The deal will “significantly
improve our financial regulatory framework and foster
economic growth by right-sizing regulation,” said Senate
Banking Committee Chairman
Michael Crapo (R., Idaho), who
brokered the agreement between Republicans and a
group of moderate Democrats.
Monday’s deal shows Republicans’ determination to
ease regulations that they say
constrain
U.S.
economic
Please see BANKS page A6
Political Opening
Gerald F. Seib: Opportunity
is test for Democrats.... A4
Donald Trump Jr. was in
contact with WikiLeaks... A4
Mnuchin says no give on
20% tax rate..................... A6
GOP Leaders Call on Moore to Quit
Steve Green’s collection, intended for the new Washington, D.C.,
Bible museum his family built, has been hit by smuggling allegations
BY KELLY CROW
Hobby Lobby President Steve Green was
wonder-struck as he walked into a Dubai hotel conference room filled with historical
treasures worthy of Ali Baba.
Antiquities lay piled on tables and peeked
from boxes: 4,000-year-old clay tablets that
tracked Sumerian wheat sales; stone cylinders that ancient families used to imprint
their signatures onto fresh clay documents.
The artifacts were samples from a 5,500piece collection that dealers had offered to
sell Mr. Green for $2 million. He was in
Dubai with a paid adviser in the summer of
2010, seeking relics to install in what would
become the $500 million Museum of the Bible in Washington, D.C.
After months of back and forth, Mr.
Green’s family business paid $1.6 million for
the lot. Mr. Green thought he was getting a
bargain.
Instead, the deal cost Hobby Lobby another $3 million in July to settle a government lawsuit alleging the goods were smugPlease see BIBLE page A14
China Leads Charge
As IPOs Roar Back
A flood of Chinese companies is driving the biggest
world-wide surge of initial public offerings in a decade.
More than 1,450 companies
globally have gone public so far
in 2017, putting this year on
By Steven Russolillo in
Hong Kong and Corrie
Driebusch in New York
track to become the busiest for
new listings since 2007, according to Dealogic data through
Friday. Roughly two-thirds of
the IPOs were in the Asia-Pacific region, which has roared
past the U.S. to become the
dominant region for new stock
listings. Overall, the deals
raised more than $170 billion
globally, compared with the
roughly 950 deals in the same
period last year that raised
around $120 billion. While listings have picked up sharply,
dollar volume is only the third
highest over the past decade
and well below the boom years
in 2006 and 2007 before the financial crisis.
A pickup in economies
across Asia has led more companies to seek capital for expansion and growth by selling
stock publicly. Increasingly,
much of that capital is coming
from investors with newfound
wealth—particularly in China,
which has powered much of the
IPO surge.
Please see IPOS page A6
James Mackintosh: For small
U.S. firms, IPOs fade.............. B1
MARVIN GENTRY/REUTERS
A flood of Chinese firms
is driving the biggest worldwide surge of initial public
offerings in a decade. A1
EURO $1.1669
Dozens of banks received
the biggest signal yet that they
may soon be freed from some
of the most onerous rules put
in place after the financial crisis, as lawmakers from both
parties agreed to a plan that
would enact sweeping changes
to current law.
ABEDIN TAHERKENAREH/EPA/SHUTTERSTOCK
GE’s new CEO outlined a
restructuring plan that will
slash the annual dividend by
$4 billion and streamline the
industrial giant’s operations.
Shares hit a five-year low. A1
HHHH $4.00
Senate Majority Leader Mitch McConnell and other Republican
lawmakers urged Roy Moore to abandon his Senate bid, as an
additional woman accused the former judge of sexual misconduct. A3
Your Ph.D. Thesis Sounds Funky! Let’s Dance to It
i
i
i
Ph.D. students shoot videos to make esoteric research relatable
BY MELISSA KORN
An esoteric doctoral thesis is
not the sort of thing you’d bring
up at Thanksgiving dinner. One
doesn’t chitchat about prosthetic heart valves in supermarket checkout lines or dive into
mathematical representations of
matrices on blind dates.
But there’s one thing that
weird, impenetrable scientific
research has proven to be perfect for: dance videos.
Tee Pamon, a postdoctoral
fellow at Stony Brook University
in New York, longed to make his
research on vibration-based
therapies for musculoskeletal
disorders “exciting for people
who aren’t already excited
about musculoskeletal disorders.”
To achieve this breakthrough,
he rewrote the lyrics to “Good
Vibrations” by Marky Mark and
the Funky Bunch, donned a
throwback NBA jersey, performed a series of hip-hop maneuvers, cut it into a two-minute video and posted it on
YouTube.
Dancing surgeon
Another doctoral student
choreographed a video in which
a woman dressed in red (to signify a blood cell) hula-hoops
around two salsa dancers
dressed as a cow and a pig. A
Ph.D. candidate in mathematics
brought her thesis to life by
putting on a black leotard and
hanging upside down from a
rope.
Rather than bore friends and
family with impenetrable jargon, hundreds of scientists over
the past decade have shot videos for the Dance Your Ph.D.
competition, sponsored by Science magazine and the American Association for the Advancement of Science. The
contest offers a $500 prize to
winners in biology, physics,
Please see DANCE page A14
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Tuesday, November 14, 2017
* *
THE WALL STREET JOURNAL.
U.S. NEWS
Ex-Eli Lilly Official Is Picked to Run HHS
BY STEPHANIE ARMOUR
AND LOUISE RADNOFSKY
President Donald Trump
announced he was nominating
Alex Azar as secretary of
health and human services,
picking a former George W.
Bush administration official
who has criticized the Affordable Care Act to lead the
agency that is tasked with carrying out the health law.
Mr. Azar, who served as
deputy secretary of HHS before becoming president of an
Eli Lilly & Co. affiliate, would
inherit a $1 trillion agency
charged with overseeing the
2010 health law in the wake of
congressional Republicans’
failed effort to repeal it.
If confirmed, Mr. Azar
would succeed Tom Price, who
resigned in September over
his use of private-jet and military flights. Mr. Azar had been
considered the front-runner
for the position, but the timing of the announcement on
Monday came as a surprise
when Mr. Trump made it on
Twitter on the final leg of an
Asian trip.
“Happy to announce, I am
nominating Alex Azar to be
the next HHS Secretary. He
will be a star for better health
care and lower drug prices!”
Mr. Trump wrote in the tweet.
The choice of a detail-oriented lawyer familiar with the
workings of the federal government drew praise from Republicans, who said that Mr. Azar
would bring significant institutional knowledge to the job.
Some consumer groups
criticized Mr. Azar’s pharmaceuticals background, saying
he might neglect to focus on
lowering drug costs.
Democrats also said they
would press broad objections
to the administration’s desire
to overturn the ACA during his
confirmation process.
Mr. Azar, 50 years old, has
already been confirmed twice
by the Senate for appointments at HHS. He has extensive knowledge of regulatory
process, cutting his teeth at
HHS by implementing the
Bush administration’s flagship
health-care effort, the Medicare Part D prescription-drug
program.
Since then, he has called for
limited federal involvement in
health policy and voiced support for key conservative
ideas. Mr. Azar couldn’t be
reached to comment.
In a July interview with Fox
Business, Mr. Azar expressed
support for a Senate Republican bill that sought to dismantle major portions of the ACA,
saying, “The status quo is
bad—any change can only be a
good thing.”
Mr. Azar got his start in
Washington with a clerkship
for Supreme Court Justice Antonin Scalia. He also worked
for Independent Counsel Kenneth Starr, who investigated
President Bill Clinton, calling
Mr. Starr “my mentor” in a
Yale Law alumni profile. After
working for Mr. Bush’s presidential campaign in 2000, Mr.
Azar became general counsel
at HHS.
At the end of Mr. Bush’s
first term, Mr. Azar was asked
to stay on as deputy secretary.
His smooth Senate confirmation back then could be an asset for Mr. Trump now, given
the turmoil over the administration’s intentions to dismantle the ACA.
Democrats on Monday
promised a challenging confirmation process, though their
ability to block Mr. Azar would
be limited, because Republicans hold a 52-48 advantage
in the Senate.
Drug Prices
Rose at Lilly
Alex Azar’s Career
Most recent job: president of
Eli Lilly & Co.’s U.S. unit, the
company’s largest.
Education: Dartmouth College,
1988 A.B. degree, summa cum
laude; Yale Law School, 1991.
u Clerked, U.S. Supreme
Court Justice Antonin Scalia.
u Associate independent
counsel in office of
Whitewater Independent
Counsel Kenneth W. Starr.
u Member of Washington,
D.C., law firm Wiley, Rein and
Fielding, until 2001.
u HHS general counsel, then
deputy secretary, until 2007.
President Donald Trump
said in a tweet Monday that
his nominee for secretary of
Health and Human Services
will be a “star” for his ability to
lower drug prices, but during
Alex Azar’s tenure as an Eli
Lilly & Co. executive prices
rose dramatically for some of
the company’s top drugs.
Mr. Azar, who served as a
deputy HHS secretary in the
George W. Bush administration,
joined the Indianapolis company in 2007 as senior vice
president of corporate affairs
and communications. He rose
through the ranks and in 2012
was promoted to president of
Lilly’s U.S. pharmaceuticals unit.
Mr. Azar oversaw sales
teams for drugs including the
erectile dysfunction treatment
Cialis and the blood thinner Effient. He also oversaw negotiations with health insurance
plans aimed at persuading
them to pay for Lilly’s products.
While Mr. Azar headed the
U.S. business, Lilly came under
criticism for raising prices for
some of its drugs, including a
more than doubling in the U.S.
list price for Humalog insulin
between 2011 and 2016.
Lilly has said it pays undisclosed rebates and offers discounts to health insurers and
pharmacy-benefit managers
that reduce the cost of its products, including Humalog. In 2016,
Lilly said the average U.S. list
price across all of its drugs rose
14%, but the average net price
after rebates and discounts
went up by just 2.4%. Those averages can obscure significant
price boosts on individual drugs.
Moreover, a growing number of patients don’t benefit
from the discounts, because
they have high-deductible
health-insurance plans that require them to pay the full list
price for drugs, or a portion of
it, for at least part of the year,
until they meet their deductibles. That helped drive public
anger about insulin prices.
Other insulin makers, including Sanofi SA and Novo
Nordisk A/S, also were criticized for raising prices substantially.
—Peter Loftus
U.S. WATCH
HEALTH CARE
Hospital Group Sues
Over Subsidy Cuts
The American Hospital Association and other powerful industry groups have sued the Trump
administration to stop $1.6 billion in cuts to lucrative drug subsidies for some hospitals.
The lawsuit, filed in U.S. District Court for the District of Columbia, alleges the U.S. Department of Health and Human
Services exceeded its authority
with cuts to the subsidy program.
The suit asks the court to stop
the cuts until the case is settled.
The program allows hospitals
to buy drugs at steep discounts.
Medicare historically has paid
hospitals slightly more than the
average sales price for the drugs,
and hospitals kept the difference.
Starting in January, Medicare
plans to slash what it pays hospitals eligible for the program,
under a new rule the administration released this month.
Carlos Angulo, an attorney for
the AHA and other plaintiffs, said
Congress intended Medicare to
pay more than what hospitals
paid for the drugs, allowing hospitals to use the savings to benefit local communities.
The subsidy was first created
more than two decades ago to
assist hospitals with large numbers of uninsured patients. But
the generous subsidies raised
concerns that hospitals might
use pricey drugs unnecessarily.
MICHAEL HOLAHAN/ASSOCIATED PRESS
We perfect each part of this watch by hand.
Even the ones that you can’t see.
READY TO LAUNCH: Rebekah Adams, 16, preparing a tomato for launch from her homemade device
during a North Augusta High School AP Physics competition in South Carolina on Monday.
HHS officials didn’t respond
to a request for comment.
—Melanie Evans
PUERTO RICO
Governor Seeks
$94.4 Billion in Funds
Puerto Rico’s governor on
Monday asked the federal government for $94.4 billion as the
island struggles to recover from
Hurricane Maria, with much of
the U.S. territory without power
and thousands still homeless.
Ricardo Roselló also urged
Congress to adopt a tax over-
haul plan that addresses Puerto
Rico’s specific needs to avoid an
exodus of the companies that
generate 42% of the island’s
gross domestic product.
The governor said during a
news conference that he will
formally make his request to the
White House and Congress,
along with a report with a detailed assessment of damage.
The governor is seeking $46
billion to restore housing through
the Community Development
Block Grant program, $30 billion
within the Federal Emergency
Management Agency to recover
critical infrastructure and $17.9
CORRECTIONS AMPLIFICATIONS
Jodie Foster cast Mel Gibson
in her film “The Beaver” before a
phone-call recording of Mr. Gibson making misogynistic and
racist remarks was leaked in
2010. A Life & Arts article Friday
about Mr. Gibson incorrectly said
his casting followed the leak.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
THE WALL STREET JOURNAL
(USPS 664-880)
(Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935)
(Western Edition ISSN 0193--2241)
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billion in other federal grant programs for long-term recovery.
Mr. Rosello said his team will
create a portal that will allow the
public to track the status of the
recovery and funds. That is part
of an effort to placate concerns
after the Puerto Rico Electric
Power Authority selected Whitefish Energy Holdings to help rebuild the island’s electrical system, even though the company
had just two employees when
the hurricane struck. The contract
was canceled on Oct. 29 amid bipartisan criticism from members
of Congress and a request by Mr.
Roselló to void the deal.
—Associated Press
SOCCER
Corruption Trial
Begins in New York
Lawyers for three former top
Latin American soccer officials
told a Brooklyn, N.Y., federal jury
that international soccer might
have been rife with corruption but
their clients were unfairly charged.
“You’re not here to decide
whether foreign soccer is corrupt,” Silvia Piñera-Vazquez, a
lawyer for former FIFA Vice
President Juan Angel Napout,
told jurors in opening statements
Monday. “Your sole duty is to
decide if Juan Angel Napout was
part of a criminal enterprise.”
Prosecutors from the Brooklyn U.S. attorney’s office allege
that Mr. Napout, who led Paraguay’s soccer federation and Conmebol, the South American soccer federation, accepted bribes
and kickbacks in connection with
media and marketing rights for
international tournaments. The
racketeering trial grew out of a
federal investigation into alleged
widespread corruption in FIFA,
soccer’s global governing body.
Manuel Burga, the former
president of Peru’s soccer federation, and Jose Maria Marin, the
former head of Brazil’s soccer federation, are also on trial in Brooklyn. Bruce Udolf, a lawyer representing Mr. Burga, said the
government “simply got it wrong.”
Charles Allen Stillman, a lawyer representing Mr. Marin, compared his client with a “fill in”
player on a youth soccer team,
“the youngster standing off to the
side, picking up daisies,” unaware
of the game going on around him.
—Rebecca Davis O’Brien
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | A3
* * * *
©T&CO. 2017
U.S. NEWS
Moore Faces GOP Pressure
Party leaders move to
block Senate nominee
as another woman
alleges misconduct
Republican
leaders in
Washington stepped up their
efforts to block Alabama GOP
candidate Roy Moore from
taking a Senate seat as a new
woman went public with accusations of sexual misconduct
by the former judge.
A top GOP lawmaker Monday took the extraordinary
step of threatening to force
Mr. Moore out of the Senate if
he fails to quit the race before
the Dec. 12 special election.
“If he refuses to withdraw
and wins, the Senate should
vote to expel him, because he
does not meet the ethical and
moral requirements of the
United States Senate,” said
Sen. Cory Gardner (R., Colo.),
chairman of the party’s Senate
campaign arm, which has already cut off a fundraising
agreement with Mr. Moore.
Earlier in the day, Senate
Majority Leader Mitch McConnell (R., Ky.) told reporters he
believed the women who had
accused Mr. Moore of sexual
misconduct and said he was
looking for an alternative
write-in candidate to face off
against Democrat Doug Jones.
“I think he should step
aside,” Mr. McConnell said. “I
believe the women.”
LUCAS JACKSON/REUTERS
BY JANET HOOK
AND NICOLE HONG
Beverly Young Nelson, left, made new sex allegations about Roy Moore of Alabama in New York Monday.
Mr. McConnell had previously said Mr. Moore should
step aside if the allegations
prove true, a stance taken by
other Republicans, including
President Donald Trump.
Mr. Moore, who has denied
any
sexual
misconduct,
tweeted a response to Mr.
McConnell’s comments: “The
person who should step aside
is @SenateMajLdr Mitch
McConnell. He has failed conservatives and must be replaced. #DrainTheSwamp.”
Mr. McConnell is scheduled
to appear Tuesday at The Wall
Street Journal CEO Council’s
annual meeting in Washington.
Republicans are scrambling
because they worry the scan-
dal threatens the party’s hold
on the seat and could tarnish
other Republican candidates in
the midterm elections.
Even Mr. Moore’s fellow Alabama Republican, Sen. Richard Shelby, said he advised Mr.
Moore to drop out. “It’s drip
by drip,” Mr. Shelby said. “Everything last week was disturbing, it’s more disturbing
today.”
New allegations against Mr.
Moore surfaced on Monday afternoon, when Beverly Young
Nelson said at a news conference in New York that she had
been assaulted by Mr. Moore
when she was 16 years old.
Ms. Nelson spoke about the
alleged 1977 encounter at a
press conference organized by
Gloria Allred, a lawyer who
has represented women in
other high-profile sexual-assault cases. Ms. Nelson said
that Mr. Moore groped her
breasts and tried to initiate
sex with her in his car. She
said the incident left bruises
on her neck after she resisted.
Afterward, Ms. Nelson said
Mr. Moore told her no one
would believe her if she informed anyone. Ms. Nelson said
she told her sister two years after the incident and her mother
four years ago. She also said
she told her husband before
they got married. The Moore
campaign didn’t respond to a
request for comment.
TIFFANY HARDWEAR
800 843 3269
|
TIFFANY.COM
GIFTS FOR THE HANDSOME HERO
Hypertension Guidelines Broaden
Nearly half of all U.S. adults
have high blood pressure, according to sweeping new guidelines released Monday that
lower the threshold for who is
considered at risk of complications from the condition.
Most of the people considered newly hypertensive—
largely younger Americans—
would be urged to eat
healthier and exercise more
rather than take medicine, according to the guidelines, published by the American Heart
Association and the American
College of Cardiology.
Hypertension, or high blood
pressure, has traditionally been
defined as 140/90 and above
for measures of systolic blood
and diastolic blood pressure.
About one-third of U.S. adults,
roughly 72.2 million people,
are considered hypertensive
according to that definition.
The new guidelines move
the threshold for hypertension
to a reading of 130/80 and
above, a definition that includes about 46% of U.S.
adults, or 103.3 million people,
according to the authors.
Optimal blood pressure is
Pressure Points
Prevalence of hypertension by gender, race and ethnicity under old
and new guidelines
Men
Women
80%
80%
60
60
40
40
20
20
0
0
20-44 45-54 55-64 65-74 75+
Age
Hate crimes across the
country rose about 5% in 2016,
the second consecutive year in
which federal authorities tallied an increase in the number
of offenses motivated by bias
involving race, religion or sexual orientation, according to
FBI statistics released Monday.
The Federal Bureau of Investigation, relying on reports
provided by more than 15,000
law-enforcement agencies, reported 6,121 criminal incidents
U.S. Bias Offenses
Almost six in ten hate crimes
that occurred in 2016 were
based on ethnicity. Of those,
half were anti-black incidents.
Incidents by motivation, 2016
Anti-black
28.7%
Race/
ethnicity
57.5%
Anti-white 11.5
Religion
21.0
Sexual
orientation
17.7
Disability 1.2
Anti-Latino 5.7
Anti-other
race 11.3
Gender
identity 2.0
Gender bias
0.5
Note: Numbers rounded Source: FBI
THE WALL STREET JOURNAL.
20-44 45-54 55-64 65-74 75+
Age
Race and ethnicity
33.4%
White
47.3
41.0
Black
54.9
24.4
Asian
Hispanic
36.7
21.1
34.4
Source: American Heart Association
regarded as below 120/80. The
systolic number measures
pressure in the blood vessels
when the heart beats, while
diastolic measures blood pres-
Hate Crimes Rising,
FBI Statistics Show
BY DEL QUENTIN WILBER
Previous guidelines
New guidelines
last year were motivated in
some form by hate, up from
5,850 in 2015. There were
5,479 such incidents in 2014,
the FBI has said.
The data show nearly 60% of
victims in 2016 were targeted
for their race or ethnicity, 21%
for their religion, and 17% because of their sexual orientation. Of known offenders, 46%
were white and 26% were black.
More than 4,700 hate
crimes were directed at people
in the form of intimidation, assaults, murder and rape. About
2,500 targeted property.
The Anti-Defamation League,
which fights prejudice and
hate crimes, said it was concerned by the increase.
“It’s deeply disturbing to
see hate crimes increase for
the second year in a row,”
Jonathan A. Greenblatt, the
group’s chief executive, said in
a statement. “Hate crimes demand priority attention because of their special impact.
They not only hurt one victim,
but they also intimidate and
isolate a victim’s whole community and weaken the bonds
of our society.”
FBI data compiled by the
ADL show the number of hatecrime incidents has fluctuated
over the years. The FBI cataloged more than 9,700 such incidents in 2001, and no fewer
than 7,000 hate-crime incidents
annually from 2000 to 2008.
THE WALL STREET JOURNAL.
sure between beats.
Hypertension, which increases in prevalence as people
age, is a major risk factor for
heart attacks, strokes and kid-
ney failure. The authors of the
guidelines released Monday
said the new definition and emphasis on lifestyle changes are
meant to help people start managing blood pressure earlier.
Most of those affected are
younger, the authors said; the
prevalence of high blood pressure is expected to triple in
men under age 45 and double
in women under age 45.
“If we want to really capture the risk from high blood
pressure and effectively reduce
complications...at this time the
evidence is strong we need to
be taking that lower, to
130/80,” said Paul Whelton, guideline-committee chairman and a professor at Tulane
University School of Public
Health and Tropical Medicine.
The guidelines eliminate a
category, “pre-hypertension,”
that was used to define systolic
blood pressures between 120
and 139 and diastolic numbers
between 80 and 89. Now, people
with systolic blood pressures
between 130 and 139 and diastolic blood pressure between
80 and 89 who are at low risk
of cardiac complications would
be counseled to lose weight,
change diets and exercise more.
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A4 | Tuesday, November 14, 2017
P
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12
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THE WALL STREET JOURNAL.
U.S. NEWS
Democrats’ Test: Don’t Blow New Opportunity
CAPITAL JOURNAL
By Gerald F. Seib
For Democrats, it must
seem as if the skies have
opened and begun showering
good news down upon them.
In the election that really
matters this
year, in Virginia, they not
only retained
the governor’s
seat but
scored victories down-ballot
in state legislative races. They
also won the New Jersey governor’s race and flipped state
legislative seats in Georgia
and Washington state.
In Alabama, of all places,
their U.S. Senate candidate,
Doug Jones, is running even
or, in one new poll, slightly
ahead of Republican Roy
Moore amid allegations that
Mr. Moore once made sexual
advances on a 14-year-old
girl. President Donald Trump
is bumping along at a 39%
job-approval rate, and GOP
Senators Jeff Flake and Bob
Corker have delivered a more
cutting indictment of his performance than any Democrat
could offer.
S
o life is good for Democrats. They now have legitimate hopes of winning back control of the
House of Representatives next
year.
But can they still blow it?
Of course they can.
That’s true in part because
American politics in the last
generation has featured a recurring cycle of each party in
turn overplaying a good hand.
This time, Democrats can
miss their chance by deciding
that simply running against
an unpopular president is sufficient, and failing to come up
with an economic message
that recaptures the kinds of
voters they lost to Mr. Trump.
Put simply, Democrats haven’t definitively proven they
can succeed in the hardest
task before them: marrying
the energy on the party’s progressive left with votes from
traditionally Democratic
working-class whites in the
center. Until they do, their
march back to power will remain an uphill one, because
turning the 24 House seats
that would add up to a majority will require exactly that.
So how do they accomplish
that task? A good way to explore that question is to talk
with Rep. Tim Ryan of Ohio, a
rising Democratic star. He
represents not one of his
party’s safe coastal enclaves,
but rather the kind of bluecollar district around Youngstown where Trump voters
emerged in force last year.
Such voters used to be reliable Democrats, but Hillary
Clinton won just 51% of the
vote in his district last year.
“Obviously there’s a lot of
intensity within the Democratic party, so I think that’s a
really good thing that will
continue to benefit us for the
next year,” says Mr. Ryan, a
political centrist. “But it’s just
the beginning. We have a long
way to go over the course of
the next year.”
Specifically, he says, “we’ve
got to continue to sharpen
the economic message for our
party.” Many of the congressional districts Democrats
need to win next year, he
adds, won’t contain an area
like northern Virginia, where
The party now has
legitimate hopes of
winning control of the
House next year.
a combination of young professionals and upper-income
suburbanites helped propel
Democrat Ralph Northam to
victory in the governor’s race.
“So we’ve got to, I believe,
call out the president’s inadequacies in dealing with the
real economic problems of
the country,” he says. For one
thing, “we’re still waiting for
this trillion-dollar infrastructure bill he talked a lot about
in the campaign.” In blue-collar America, that idea translates not only into fixing
crumbling roads and bridges,
but into jobs.
He also says that, while
Mr. Trump is challenging
trade deals he calls unfair to
the U.S., he has failed to call
out the “inadequate provisions” in those pacts for dealing with labor and environmental standards important
to Democrats. And he says
Trump economic and tax proposals do little to discourage
companies from outsourcing
work abroad. Democrats
should call our corporations
for cheating on taxes, he says,
without being “hostile to
business.”
In some ways, the biggest
Ryan initiative has been his
advocacy of an enormous increase in the earned-income
tax credit, a program that
gives a tax benefit to lowand moderate-income families, even if they don’t owe
federal income taxes. He
wants to more than double
that credit for some workers,
which he argues would help
make up for four decades of
wage stagnation.
M
r. Ryan sides with his
party’s progressives
by advocating a government-run, single-payer
health system, but separates
from them in arguing it’s a
mistake to emphasize attempts to impeach Mr. Trump.
At the end of last year, Mr.
Ryan had the audacity to run
against Rep. Nancy Pelosi to
become his party’s House
leader. He failed. Now it’s certain that Republicans will try
to make Mrs. Pelosi the liberal face of Democratic campaigns nationwide next year.
Mr. Ryan agrees that kind
of GOP campaign is inevitable, but adds that Republicans
have their own unpopular
leaders to cope with. More
important, he says, if Democrats offer a cogent economic
message to swing voters, both
inside and outside their party,
they won’t “get caught up in
this left-right dichotomy.”
Donald Trump Jr. was in
communication during the
2016 campaign with WikiLeaks,
the online operation that last
year published a trove of damaging Democratic emails that
the U.S. intelligence community concluded were stolen by
Russian hackers, according to
an email obtained by The Wall
Street Journal.
On
Sept.
20,
2016,
WikiLeaks contacted the son of
President Donald Trump
through a direct message on
Twitter to advise him about
the pending launch of a website that would highlight ties
between the elder Mr. Trump
and Russian President Vladimir
Putin, according to the email.
“A PAC run, anti-Trump
site putintrump.org is about to
launch,” WikiLeaks warned the
younger Mr. Trump, who was
a top campaign adviser to his
father.
The WikiLeaks message told
him it had “guessed the password” behind the website, and
asked Mr. Trump Jr.: “Any
comments?”
The president’s son responded the next day that he
wasn’t aware of the group behind the website, but would
“ask around,” according to the
email, adding, “Thanks.”
He subsequently forwarded
the email to top campaign
aides, including then-campaign
chief executive Steve Bannon,
campaign manager Kellyanne
Conway, senior adviser Jared
Kushner and digital director
Brad Parscale, according to the
email viewed by The Journal.
“Do you know the people
mentioned and what the conspiracy they are looking for
could be?” he asked the group.
The website launched and
has since become a project
with the news outlet Mother
Jones that highlights the president’s ties to Mr. Putin.
The exchange—which was
first reported by the Atlantic
on Monday and is part of a
collection of documents turned
over to congressional investigators by the younger Mr.
Trump’s lawyers—marks the
first evidence of direct contact
between senior Trump campaign officials and the Sweden-based WikiLeaks.
Special Counsel Robert
Mueller and congressional investigators
are
probing
whether Trump associates colluded in Russia’s alleged efforts to interfere in the 2016
election. U.S. intelligence
WASHINGTON WIRE
IMMIGRATION
FEDERAL GOVERNMENT
Part of Travel Ban
Budget Deficit Rose
Can Start, Court Says Sharply in October
The Trump administration can
implement part of its third ban
on travelers from certain countries while litigation over the
policy is continuing, an appeals
court said Monday.
The Ninth U.S. Circuit Court
of Appeals, based in San Francisco, trimmed back a Hawaii
federal judge’s order from last
month that blocked the administration from implementing any
of its latest planned travel restrictions on people from six
Muslim-majority countries.
The appeals court said Trump
officials for now can impose the
ban on would-be travelers who
don’t have close connections to
people or organizations in the
U.S. But the administration can’t
apply the ban to travelers, including extended family members, who have bona fide relationships with U.S. residents, the
Ninth Circuit said.
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The federal government began its new budget year with an
October deficit of $63.2 billion,
up sharply from a year ago.
The Treasury Department reported Monday that the October
deficit was 37.9 percent higher
than the $45.8 billion deficit recorded in October 2016.
The deficit for the 2017 budget year, which ended on Sept.
30, totaled $666 billion, up 13.7
percent from a 2016 deficit of
$586 billion.
—Associated Press
RUSSIA PROBE
Sessions to Appear
Before Committee
Attorney General Jeff Sessions returns to Capitol Hill this
week amid growing evidence of
contacts between Russians and
associates of President Donald
Trump, bracing for an onslaught
of lawmaker questions about
how much he knew of that outreach during last year’s White
House campaign.
The appearance before the
House Judiciary Committee on
Tuesday follows a guilty plea
from one Trump campaign aide
who served on a foreign policy
council that Mr. Sessions
chaired, as well as statements
from another adviser who said
he had advised the then-GOP
Alabama senator about a coming trip to Russia.
—Associated Press
The exchange between Donald Trump Jr. and WikiLeaks was among documents his lawyers turned over to congressional investigators.
agencies in January concluded
that Russia sought to influence the 2016 presidential
campaign by hacking political
websites and spreading false
ads on social media pages.
The president has called the
investigation a “witch hunt”
and has denied collusion by
him or his campaign, and Moscow has denied meddling in
the election.
The younger Mr. Trump
was questioned by the Senate
Judiciary Committee staff in
September as part of the
panel’s Russia investigation.
Alan Futerfas, a lawyer for the
president’s son, said in a
statement that he had “no
concerns” about his client’s interactions with WikiLeaks during the campaign.
“Over the last several
months, we have worked cooperatively with each of the committees and have voluntarily
turned over thousands of doc-
uments in response to their requests,” Mr. Futerfas said.
“Putting aside the question
as to why or by whom such
documents, provided to Congress under promises of confidentiality, have been selectively leaked, we can say with
confidence that we have no
concerns about these documents and any questions
raised about them have been
easily answered in the appropriate forum,” he added.
WikiLeaks didn’t return a
request for comment. Its
founder, Julian Assange, said
in a series of tweets Monday that he couldn’t confirm
the communication between
WikiLeaks and the younger
Mr. Trump. Mr. Assange also
said the president’s son had
been “rebuffed” when he
asked for details from the
website about its pending publications of the stolen messages.
Justices Take Up Abortion-Speech Case
BY BRENT KENDALL
AND JESS BRAVIN
WASHINGTON—The
Supreme Court agreed to take up
an appeal by antiabortion pregnancy centers challenging a California law that requires them
to tell patients about the availability of publicly funded pregnancy services, including abortion.
The case, Nifla v. Becerra,
was one of three First Amendment-related appeals the high
court added to its docket Monday. The justices also agreed to
consider whether states can ban
political buttons and apparel
from polling stations, and
whether local officials in Florida can be sued for arresting a
resident who criticized their
land-use policies at a public
meeting.
The abortion speech case
adds another highly charged issue to a docket that already is
filled with divisive cases, including one next month that examines whether a baker can refuse to make wedding cakes for
same-sex couples.
California’s Democratic Gov.
Jerry Brown signed the abortion-clinic measure in 2015 and
it took effect last year. The law,
the Reproductive FACT Act, requires certain licensed pregnancy-related centers to post
notices and include disclaimers
in their literature advising patients that Medi-Cal, the state’s
version of Medicaid, covers
abortions for eligible low-income residents.
The Legislature said the law
JOHN MINCHILL/ASSOCIATED PRESS
BY REBECCA BALLHAUS
KATHY WILLENS/ASSOCIATED PRESS
Donald Trump Jr.
Was in Contact
With WikiLeaks
The high court will review a Minnesota law against political messages at polls, including the
Gadsden flag favored by tea-party groups.
was necessary because the targeted facilities, in their efforts
to discourage abortions, “often
confuse
[and]
misinform
women” about their rights and
available benefits.
Religiously affiliated antiabortion pregnancy centers,
and an organization representing such facilities, petitioned
the Supreme Court. They said
the law violates free-speech and
religious-exercise protections
because it forces them to communicate a government mes-
sage about the availability of
state-funded abortion.
In a separate case, the court
said it would decide whether a
state ban on political buttons or
apparel within a polling station
is constitutional. In 1992, the
court upheld a Tennessee law
prohibiting “campaign materials” within 100 feet of a polling
place. The law now at issue, a
Minnesota state statute, sweeps
more broadly, prohibiting materials that suggest political views
beyond the specific candidates
or issues on the day’s ballot.
The final case involves a
long-running dispute before the
Supreme Court. In 2013, the
court ruled for Fane Lozman after the city of Riviera Beach,
Fla., invoked maritime law to
seize the houseboat on which
he had lived.
In the current case, Lozman
v. Riviera Beach, Mr. Lozman
was arrested for disorderly conduct after refusing to leave the
lectern at a November 2006
City Council session.
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THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | A5
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A6 | Tuesday, November 14, 2017
* ***
THE WALL STREET JOURNAL.
U.S. NEWS
Mnuchin Says No Give on 20% Tax Rate
Treasury chief says
Trump won’t budge;
‘perfectly fine’ if Yellen
stays as Fed governor
GOP Works to Make
Legislation Meet
The ‘Byrd Rule’
BY NICK TIMIRAOS
Continued from Page One
The U.S. has also seen a
pickup in listings and has
drawn some of the biggest offerings this year from the likes
of social-media giant Snap Inc.
and cable company Altice USA
Inc. Many prominent companies, however, are flush with
private capital and under no
urgency to go public, which has
kept U.S. IPO activity below its
recent 2014 high. Almost 170
private companies globally are
valued at $1 billion or more, according to Dow Jones VentureSource. That is up from about
75 in November 2014.
Instead, the uptick in new
listings has been largely driven
by smaller companies outside
the U.S.
“China is the story right
now that has distorted the IPO
picture,” said Andrew Clarke,
director of trading at Mirabaud
Asia Ltd. in Hong Kong. “China
and Hong Kong are listing lots
of stocks. They’re generally
small, but they add up,” he
added.
Treasury Secretary Steven Mnuchin, right, is interviewed by Wall Street Journal Editor in Chief Gerard Baker at the Journal’s CEO Council.
plan and slightly more under
the Senate plan—would ultimately make up the lost revenue through stronger economic
growth. Forecasts from independent tax-analysis experts
show economic growth would
make up some but not all of the
lost revenue.
Mr. Mnuchin promised “complete transparency” in showing
how the plan would deliver
A total of 377 Chinese companies have completed IPOs in
Shanghai and Shenzhen so far
this year, according to Dealogic, the most since at least
1995, when the firm started
tracking the data. The deals
make up one-fourth of all
global IPOs by number of deals,
the largest percentage on record and up from 10% as recently as 2014.
Hong Kong was the world’s
most-popular venue for new
listings the past two years.
While 2017 hasn’t been as robust, the market has recently
seen newfound fervor.
The recent IPO of China Literature Ltd., a subsidiary of
Tencent Holdings Ltd. that
owns a large online library of
works by Chinese authors,
drew more than $100 billion in
investor orders for the company’s $1.1 billion stock sale,
with much of the demand coming from retail investors. Its
shares nearly doubled on their
first trading day.
Investors are being rewarded for diving into the new
listings. Shares of newly public
companies in Asia-Pacific, on
average, have risen nearly 154%
stronger growth. But pressed
on whether the Treasury would
release additional models or evidence to support those claims,
he demurred.
“Treasury already has,” he
said. “We’re going to have outside groups do it.”
Mr. Mnuchin also said he
strongly supported President
Donald Trump’s decision to
name Federal Reserve governor
Support news literacy at
thenewsliteracyproject.org
mand. After a stock-market
crash in 2015, China’s securities
regulator temporarily halted
new listings. In the middle of
last year it started accelerating
approvals for companies wishing to go public.
Other countries in Asia, including India and South Korea,
have accounted for some of the
analysts and investment bankers.
As more companies go public in Asia, the continent’s vast
and growing collective of
wealthy individuals, particularly in China, are looking for
more ways to diversify their
capital. Asia’s billionaires outnumbered those in the U.S. last
year for the first time, with the
biggest catalyst being growth
in China, according to a report
by UBS Group AG and PwC.
Damien Brosnan, Hong
Kong-based portfolio manager
at Maven Investment Partners
Ltd. and former head of equity
capital markets for Asia at UBS,
said he sees more funds setting
up stock portfolios and strategies that are dedicated to AsiaPacific compared with a few
years ago.
Even though listing activity
has picked up, there are plenty
of private companies in Asia
following big U.S. startups in
putting off going public. AsiaPacific represents 40% of IPOs
by deal value this year, compared with 32% for the Americas and 28% for Europe, the
Middle East and Africa, according to Dealogic.
load.
For stress tests alone, building a system to meet the Fed’s
expectations could cost firms
tens of millions of dollars or
more. Liquidity rules governing banks’ cash holdings are
another expensive regulatory
exercise that the legislation
could allow the Fed to ease.
Regional banks have said
their smaller size and lack of
interconnected trading businesses makes it unlikely that
their demise could create systemic risk that would threaten
the economy as Lehman Brothers’ failure did in 2008. Their
critics say regional banks can
be risky, pointing to the 2008
failure of IndyMac Bank.
The deal marks a setback
for regional banks with assets
above $250 billion, including
U.S. Bancorp and PNC Financial Services Group Inc., which
have urged policy makers to
do away with asset-size
thresholds altogether. They favor allowing regulators to apply rules based on their own
judgment of firms’ riskiness.
“$50 billion? $250 billion?
Why is that number any better
than another?” U.S. Bancorp’s
chief financial officer Terry
Dolan said in an October interview. His firm has about $459
billion in assets.
PNC said in a statement
Monday it was disappointed in
lawmakers’ proposal. “As a
Main Street Bank, PNC’s business model and risk profile are
very similar to that of other
regional banks, and very different from the systemically
important Wall Street banks,”
it said.
Monday’s deal is co-sponsored by nine Republicans, including Tim Scott of South
Carolina and Bob Corker of
Tennessee, along with nine
Democrats, including Joe Donnelly of Indiana and Heidi
Heitkamp of North Dakota.
That is enough to clear both
the banking panel and the full
Senate, assuming all Republicans in the chamber support
the bill.
In brokering the deal, Mr.
Crapo left off key Republican
goals such as attacking the
Volcker rule, a ban on proprietary trading.
“This is the first proposal
that has a legitimate shot at
making it to the president’s
desk,” said Milan Dalal, an attorney at lobbying firm
Brownstein Hyatt Farber
Schreck in Washington and a
former aide to Sen. Mark Warner (D., Va.), who backed Monday’s deal.
Republicans hold just 52
seats in the Senate and generally need support from at least
eight Democrats for legislation
to pass a needed 60-vote
threshold. The House, also
controlled by Republicans,
would need to act for the plan
to clear Congress.
Mr. Crapo released a summary of the legislation Monday, without unveiling its text.
It appears to send a message
that Congress wants regulators to lighten the burden,
though regulators still have
broad authority to apply tough
rules to banks they view as
risky.
Regulators could immediately exempt firms with assets
between $50 billion and $100
billion from stress tests and
other rules that were mandatory under Dodd Frank, according to the summary of the
legislation. Banks with between $100 billion and $250
billion in assets could get that
treatment after 18 months,
though the Fed could exempt
them earlier. Banks in the latter group would still have to
take periodic stress tests.
Asia-Pacific is now the most popular location for initial public
offerings, a sharp change from two decades ago when the Americas
dominated the IPO market.
Percentage of total number of deals globally per year
100 %
Americas
Europe, Middle East and Africa
Asia-Pacific
90
80
70
60
50
40
30
20
10
0
1995
2000
’05
’10
’15
Note: through Friday
Source: Dealogic
from their IPO prices this year
through Friday, according to
Dealogic. That compares with
an average 32% gain for IPOs in
the Americas and a 12% increase for new issues in Europe, the Middle East and Africa this year.
The slew of Chinese IPOs is
partly a result of pent-up de-
Continued from Page One
growth by limiting the capacity of banks and other businesses to serve customers and
hire new workers. While it
isn’t clear that any rule reduction will bolster the economy,
efforts to scale back the 2010
Dodd Frank financial overhaul
law and other policies amount
to a bet that a freer environment will pave the way for increases in investment, spending and hiring.
Analysts said it isn’t clear
that lending would actually increase, given that demand for
commercial loans this year has
been weak. But banks that had
been avoiding mergers, such
as those that didn’t want to go
over the $50 billion line, could
be more inclined to deal-making, said Brian Klock, an analyst at Keefe, Bruyette &
Woods.
The deal could dramatically
lighten the regulatory burden
on a wide swath of banks from
Utah’s Zions Bancorporation to
M&T Bank Corp. in Buffalo,
N.Y. Those banks in recent
years have had to submit to
detailed financial and risk exams in order to pay dividends
to shareholders.
Many banks bristled at this
annual “stress test” review
done by the Federal Reserve,
and some including Zions, Citizens Financial Group Inc.,
BB&T Corp. and SunTrust
Banks Inc., failed the Fed’s annual test previously. The bill
would lighten their stress-test
cies, Mr. Mnuchin said the new
technology needed to be studied more carefully, and he
warned that the currencies are
being used by “a lot of people”
for illicit transactions. Mr.
Mnuchin, a former banking executive, said he didn’t believe
that digital currencies were
helping to lower transaction
costs in the financial-services
market.
larger listings in the region.
Overall, nearly 950 companies
have gone public in Asia-Pacific, the most since the height
of the dot-com boom in 2000.
The number of new listings in
the U.S. fell sharply around that
time, and they have never recovered to their late-1990s levels.
Back then, many fledgling
companies in the U.S. raced to
go public to cash in on soaring
equity prices. Ultimately, many
of those companies failed, and
the stock market tumbled. Today, the worry is IPOs in Asia
are dominated by smaller companies, many of which are unprofitable and have unproven
business models yet are benefiting from a friendly market
environment.
Stock markets in Asia have
been among the best global
performers this year, with indexes in Hong Kong, Korea and
India gaining at least 20%
apiece through Friday. Low volatility and still-reasonable valuations relative to the U.S. and
Europe have also bolstered the
prospects of Asian stock markets, drawing companies to list
their shares there, according to
Shifting Influence
BANKS
DON’T TAKE NEWS
AT FACE VALUE.
Jerome Powell to replace Fed
Chairwoman Janet Yellen when
her term expires next February.
He said it would be “perfectly
fine” with him if Ms. Yellen remained on the Fed’s sevenmember board of governors.
Ms. Yellen’s term as a governor
doesn’t expire until 2024.
Pressed about the prospects
for the wider adoption of bitcoin and other digital curren-
THE WALL STREET JOURNAL.
ANDREW HARRER/BLOOMBERG NEWS
IPOS
RALPH ALSWANG FOR THE WALL STREET JOURNAL
WASHINGTON—Treasury
Secretary Steven Mnuchin said
the Trump administration
wouldn’t support tax legislation
with a corporate tax rate of
more than 20% as part of any
future compromise between the
House and the Senate.
In an interview at The Wall
Street Journal CEO Council
gathering Monday, Mr. Mnuchin
ruled out any increase in the
corporate tax rate to above
20%.
“It’s not going up,” he said.
“I can tell you this is one of the
things the president feels very
strongly about.”
Senate Republicans’ proposal
to overhaul the tax code, unveiled last week, diverges in key
ways from a plan that advanced
through a House committee.
Both bills would reduce the corporate tax rate to 20% from
35%, but the Senate proposal
would delay the rate cut until
2019, forgo a repeal of the estate tax and eliminate the entire
state and local tax deduction.
Compared with the House
bill, those changes and others
freed up hundreds of billions of
dollars that enabled senators to
avoid tough and politically
painful choices.
Mr. Mnuchin said the Treasury Department believes the
GOP tax overhaul—which congressional analysts estimate
would cost about $1.4 trillion
over 10 years under the House
WASHINGTON—Senate
Finance Committee Republicans, who began debate on
Monday on a major tax overhaul, must make significant
revisions to their proposals
in the days ahead to stay
within rules preventing longrun budget deficits.
As written, the Senate
Republican tax bill doesn’t
comply with what is known
as “the Byrd Rule,” which prevents the Senate from passing tax and spending measures on simple majority
votes if they increase budget
deficits beyond 10 years.
“It literally cannot pass the
Senate. It’s against the rules
unless they have 60 votes,”
said Marc Goldwein, senior
vice president of the Committee for a Responsible Federal
Budget.
Republicans haven’t said
how they plan to change the
bill to comply with the Byrd
Rule.
The most likely scenario is
setting many of the tax cuts
to expire after 2027, at the
end of the decadelong budgeting period. It may take
more than that. The committee debate is expected to run
through the week, paving the
way for full Senate consideration after Thanksgiving.
The full House is expected
to vote on its tax bill this
week.
—Richard Rubin
Sen Michael Crapo (R., Idaho) heads the Senate Banking Committee.
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Tuesday, November 14, 2017 | A7
Marketing
Data Onboarding | IDMP | Customer Intelligence | Audience Targeting | Measurement | Analytics
©2017 Neustar, Inc. All rights reserved.
www.marketing.neustar
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A8 | Tuesday, November 14, 2017
THE WALL STREET JOURNAL.
WORLD NEWS
Trump, Duterte Bond, Skirt Tough Issues
U.S., Philippine leaders
discuss trade, security,
avoid alleged abuses,
Chinese sea claims
MANILA—President Donald
Trump and Philippine leader
Rodrigo Duterte found common ground during their first
extended meeting, but skirted
difficult issues such as alleged
human-rights abuses in Mr.
Duterte’s war on drugs and
Chinese claims to the South
China Sea.
The meeting on Monday
was seen as a way for the U.S.
and the Philippines to repair a
historically close relationship
that was shaken last year because of Mr. Duterte’s antiAmerican rhetoric.
The leaders discussed trade
relations, the Philippines’
large outsourcing industry,
U.S. assistance on counterterrorism and their personal relationship, said Harry Roque, a
spokesman for Mr. Duterte. He
said that they affirmed close
ties in a frank 40-minute discussion and that Mr. Trump
told Mr. Duterte that he has a
friend in the U.S. president.
Before the meeting, Mr.
Trump told reporters he and
Mr. Duterte “had a great rela-
JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY JAKE MAXWELL WATTS
President Trump joined hands with Vietnam Premier Nguyen Xuan Phuc, left, and Philippine President Rodrigo Duterte in Manila Monday.
tionship.” Mr. Duterte called
his country “an important
ally” and shooed away reporters in a joke shared with Mr.
Trump, saying, “You guys are
the spies.” The night before,
Mr. Duterte sang a Philippine
love song at the behest of Mr.
Trump, according to a video
posted on Twitter by a Philippine government official.
The tone is a sharp shift
from Mr. Duterte’s relationship
with the U.S. under President
Barack Obama, whom he once
insulted for wanting to raise
human-rights issues. Mr. Duterte has been public about
harboring animosity toward
the U.S. for its colonial history
in the Philippines.
What was significant about
Monday’s meeting, however,
wasn’t the budding friendship
but what the presidents didn’t
discuss in detail—most notably, concerns over the Philippines’ war on drugs and alleged extrajudicial killings.
Since Mr. Duterte took office last year, thousands of
people have died in the crackdown on illegal drugs, most
shot during police operations
or by gunmen that activists
say are police in plainclothes—a charge that Mr. Duterte denies.
During their meeting, Mr.
Duterte explained his policy in
the war on drugs to Mr.
Trump, said Mr. Roque. White
House press secretary Sarah
Huckabee Sanders said “hu-
man rights briefly came up,”
adding that the conversation—
on the sidelines of a meeting
of Southeast Asian nations—
focused on Islamic State, illegal drugs and trade.
The two leaders also appeared to sidestep the issue of
competing territorial claims to
the South China Sea, resourcerich waters that are claimed
by the Philippines, China and
several other nations. China
claims almost the entire sea
and has militarized some of
the disputed islands.
The Philippines won an international arbitration last year
that effectively invalidated
China’s claims, but Mr. Duterte
hasn’t pressed the issue, instead reaching out to Beijing for
investment in infrastructure.
Mr. Duterte said Sunday the
South China Sea is better left
“untouched,” for fear of war.
The U.S. doesn’t take sides
in the dispute, but has conducted frequent naval patrols
through the disputed waters.
The issue came up in a meeting between the U.S. and the 10country Association of Southeast Asian Nations, Mr. Roque
said. The countries said they
agreed to commit to peaceful
resolution of disputes under international law, and to “the
rights of freedom of navigation
and overflight” and “non-militarization and self-restraint.”
North Korea Soldier Shot at Border Zone
HONG KI-WON/YONHAP/REUTERS
BY ANDREW JEONG
A surgeon speaks with a South Korean soldier at a hospital where
a North Korean soldier was taken on Monday for treatment.
SEOUL—A North Korean
soldier apparently defected to
the South on Monday, only to
be shot by his comrades as he
crossed the border at the
most sensitive area of the
heavily armed demilitarized
zone that divides the Korean
Peninsula.
The North Korean soldier,
who tried to cross over at the
Joint Security Area, where
troops from North and South
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Korea stand face to face, was
shot in the shoulder and elbow, according to a spokesman for South Korea’s Defense
Ministry.
“Our side heard gunshots,
and then we found him near
Freedom House,” the spokesman said, referring to the
main building on the South
Korean side of the border,
near where the armistice
agreement declaring a ceasefire to the Korean War was
signed in 1953.
The spokesman said the
North Korean soldier had been
taken by helicopter to a hospital for treatment.
It wasn’t clear whether any
South Korean or U.S. personnel were wounded in the incident, but a person briefed by
the South Korean Joint Chiefs
of Staff and a spokesman for
the South Korean Defense
Ministry said the North Korean soldier was the only person hurt.
The U.S. maintains about
28,500 troops in Korea.
The
Defense
Ministry
spokesman said it wasn’t clear
whether there were any civilians at the JSA at the time of
the incident. The JSA—a symbol of the Cold War—is one of
the most popular stops for
foreign tourists to South and
North Korea, and among the
most photographed and heavily watched places on the Korean Peninsula.
Gunshots were first heard
on the South Korean side
around 3:30 p.m., the spokesman said, and a team from the
South Korean side secured the
wounded North Korean soldier
after about 25 minutes, he
said.
The incident follows by
days an attempt at a surprise
visit by President Donald
The soldier, who was
taken to a hospital,
apparently defected to
the South on Monday.
Trump to the Joint Security
Area during his stop in South
Korea last week.
Mr. Trump’s trip was canceled after his helicopter encountered thick fog, though
Secretary of Defense Jim Mattis visited last month.
It also comes as the U.S. operates three carrier strike
groups in the waters just east
of the Korean Peninsula in a
show of force aimed in part at
deterring Pyongyang.
The USS Ronald Reagan,
the USS Theodore Roosevelt
and the USS Nimitz are conducting the first three-carrier
operation in the western Pacific since 2007. The three
groups carry about 200 jet
fighters that can conduct
around-the-clock military operations.
Although tens of thousands
of North Koreans have defected to the South through
third countries, including
China, it is relatively rare for
soldiers to cross the heavily
fortified DMZ by land, given
the land mines, barbed-wire
fences and artillery on both
sides.
The most recent known defection of a North Korean soldier over the DMZ was in June
at a different part of the border.
The JSA, which has been a
venue for talks and prisoner
exchanges among North and
South Korea and the U.S., isn’t
typically the scene of skirmishes, although violent incidents there aren’t unheard of.
In August 1976, North Korean troops killed U.S. Army
Capt. Arthur Bonifas and First
Lt. Mark Barrett at the JSA, in
what became known as the
Axe Murder incident.
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THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | A9
WORLD NEWS
Myanmar Resists Pressure
BY NIHARIKA MANDHANA
AND MYO MYO
BY PAUL KIERNAN
500 miles
NAVESH CHITRAKAR/REUTERS
NAYPYITAW, Myanmar—
Aides to Aung San Suu Kyi
have been warning Western
ambassadors that their pressure on Myanmar in support
of ethnic Rohingya Muslims is
pushing the country closer to
China—a sign of the resistance
that awaits Secretary of State
Rex Tillerson when he visits
on Wednesday.
The U.S. and others are
pressing
Buddhist-majority
Myanmar and its Nobel Prizewinning leader to do more to
address a humanitarian crisis
caused by a military crackdown
on the Rohingya that drove
over 600,000 people across the
border into Bangladesh.
Mr. Tillerson in September
condemned what he called the
“horrors that we are witnessing” in Myanmar, amid reports
that the military had burned
Rohingya villages and killed
and raped villagers. Proposed
legislation in the U.S. Congress
seeks to block assets of military
leaders and ban their travel.
During his visit, Mr. Tillerson intends to meet with senior leaders and officials on actions to address the crisis and
U.S. support for the democratic
transition in the formerly military-ruled country, according
to the State Department.
Myanmar denies refugee accounts of atrocities during security operations, which came
after a Rohingya militant
group attacked military outposts near the border in August. Ms. Suu Kyi’s government accuses Western leaders
of falling for what they say are
biased reports.
Ms. Suu Kyi’s aides said she
wouldn’t change course in response to U.S. or European
sanctions.
“We are used to being under pressure—first it was the
military, now it’s the West,”
said Win Htein, a senior party
leader close to Ms. Suu Kyi.
Mr. Win Htein said he has
told Western diplomats that if
such pressure continues, “it’s
inevitable” that Myanmar will
Brazil Lacks
Means to Process
Offshore Oil Find
Refugees took shelter Monday after crossing the border, in Teknaf, near Cox’s Bazar, Bangladesh.
Local Leverage
China dominates the foreign-investment landscape in Myanmar.
China
$19.38 billion
Singapore
$18.59
Thailand
$11.01
Hong Kong
U.K. †
South Korea
$7.76
$4.33
$3.78
Vietnam
$2.10
Malaysia
$1.95
Netherlands
India
$1.51
$0.74
Japan
$0.72
France
$0.55
U.S.
$0.38
Indonesia
$0.27
move closer to its neighbor
China. Beijing has been Myanmar’s most vocal defender.
Western officials said they
had tried but failed to push
Ms. Suu Kyi’s government to
take concrete steps that would
help ease the global outcry. A
Western diplomat said the U.S.
and Europe had little leverage
because China, Japan, India
and other Asian nations had
†British Overseas Territories
Note: Figures as of Sept. 30, 2017
Source: The Directorate of Investment
and Company Administration
THE WALL STREET JOURNAL.
indicated they would remain
engaged with Myanmar.
Advisers to Ms. Suu Kyi
said they expect the U.S. will
reimpose some of the restrictions former President Barack
Obama lifted last year after
Ms. Suu Kyi’s National League
for Democracy came to power
in Myanmar’s first free election in half a century.
Arizona Republican Sen.
John McCain has called for
such action to punish Myanmar’s military leaders.
The previous sanctions
were removed to encourage
Myanmar’s democratic transition. Some U.S. officials said
they worry that reinstating
any sanctions would undermine that process.
Ms. Suu Kyi’s aides are also
sending the message that
sanctions could worsen her relationship with the army and
cause the generals to tighten
their grip. Ms. Suu Kyi doesn’t
control the military, which still
runs many of the most important government agencies.
Aides said Ms. Suu Kyi’s
priority is to be able to work
with the military to achieve
her longer-term goals, which
include constitutional change
toward a fuller democracy.
Aides also said Ms. Suu Kyi
feels betrayed by the West and
has sunk into siege mentality.
“In a few years, the U.S. and
Europe might be asking: Who
won and then lost Myanmar?”
said Simon Tay, chairman of the
Singapore Institute of International Affairs. “Myanmar wants
to diversify, but if they have no
choice, they will turn to China.”
RIO DE JANEIRO—In a few
months, Brazil’s federal government will start receiving
crude oil from a huge field,
known as Libra, off the coast
of Rio de Janeiro. But the government has no tanker ships
to unload oil from the platform where it will be pumped.
It has no terminals to store
oil, no pipelines to transport it
and no refineries to process it.
Worst of all, oil companies
that do have such assets, like
Brazil’s own Petróleo Brasileiro SA, or Petrobras, are staying
away for fear that working with
the government could expose
them to compliance issues at a
time when the three-year-old
Car Wash probe has heightened
concerns about corruption.
The situation, which officials are scrambling to resolve
before the government receives its first 500,000-barrel
boatload in February or March,
has been years in the making.
After Brazil discovered massive offshore crude deposits a
decade ago, its leaders were eager to show that the money
would directly benefit the people. Then-President Luiz Inácio
Lula da Silva created a new system whereby drilling rights to
so-called strategic areas were
auctioned off to those firms
promising the government the
greatest share of “profit oil,” or
the product that remains after
exploration, development and
production costs are covered.
Auctioned in 2013 to a consortium led by Petrobras, Libra’s contract stipulated that
42% of profit oil be given to a
specially created, state-owned
entity dubbed Pré-Sal Petróleo
SA, or PPSA.
By law, PPSA sales are earmarked to a special fund that is
supposed to spend money on
areas like education and health.
The trouble is, PPSA finds itself
500 km
BRAZIL
Brasília
Rio de Janeiro
PAR.
URU.
São
Paulo
Libra
oil field
Atl a nti c O cea n
unable to receive any actual oil.
The law says PPSA is supposed to designate a “commercial agent,” such as an energytrading company, to offload its
oil and sell it on the open market. But PPSA’s president, Ibsen
Flores Lima, says the government’s efforts to clarify that
rule weren’t completed until
March, and that now it could
take two years to find an agent
through a public tender.
Meanwhile, PPSA had assumed Petrobras would fulfill
the role of selling the government’s oil on its behalf. But
the legal framework drawn up
in March scared Petrobras
away. The rules would require,
for instance, that Petrobras
obtain the best possible price
for the government’s oil,
something Petrobras officials
say would be impossible to
prove given the commodity’s
minute-by-minute volatility.
Adriano Pires, an energy
consultant based here, said he
suspects the government
wrote such stringent rules in a
bid to eliminate corruption.
“Brazil in the time of Operation Car Wash demands increasingly transparent models,” he said.
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A10 | Tuesday, November 14, 2017
WORLD NEWS
WORLD WATCH
Quake Recovery Proceeds
VENEZUELA
S&P: Nation in Default
On Interest Payment
FARZAD MENATI/AGENCE FRANCE-PRESSE/GETTY IMAGES
By Aresu Eqbali
in Tehran and Asa
Fitch in Dubai
Iranians mourn over the body of a victim of Sunday’s earthquake along the Iran-Iraq border.
died there, Iranian authorities
said. The toll in Qasr e-Shirin
was 28.
Hospitals near the epicenter
were damaged, and the one in
Sarpol Zahab couldn’t continue operating, state television said. Qasr e-Shirin’s hospital was destroyed, according
to an official. Authorities were
setting up field hospitals.
A European Union spokesman said humanitarian partners in the region were starting to provide emergency
assistance. The World Health
Organization sent a response
team and two ambulances to
Sulaymaniyah, an Iraqi Kurdish city. Turkey also offered to
assist.
On Monday, the Trump administration issued a brief
statement offering condolences to those affected.
“The United States expresses its sincere condolences to all of those affected
by the earthquake in Iran and
Iraq. We keep the families of
those who were killed, and injured, in our thoughts as well
as the communities that have
suffered damage to homes and
property,” State Department
spokeswoman Heather Nauert
said.
While there are no major
population centers in the immediate vicinity of the quake’s
epicenter, a mountainous area
pockmarked with small villages, it lies about 46 miles
southeast of Sulaymaniyah,
the capital of a province estimated by the Iraqi government in 2007 to have around
1.9 million residents.
Hospitals in Sulaymaniyah
received about 83 people affected by the quake Monday
morning. Tremors were felt as
far as the United Arab Emirates and Turkey.
Venezuela was ruled in default on a missed interest payment by S&P Global Ratings,
pushing the cash-strapped South
American country and its creditors one step closer to a reckoning of its $150 billion debt load.
The decision by S&P capped
a day in which Venezuela promised to keep paying its debts at
a conference in Caracas that
was attended by few of the
Western bondholders that are
likely to be hit by a default.
S&P downgraded Venezuela’s
long-term debt rating to selective
default late Monday after it said
the government failed to make
two bond coupon payments.
The missed payments could
allow investors to declare the
government in default, which
would enable bondholders to initiate defaults in other Venezuelan debt and set off a scramble
for assets among the country’s
many and varied creditors, lawyers and analysts say.
—Julie Wernau
and Anatoly Kurmanaev
EUROPEAN UNION
Majority Agrees
On New Defense Pact
The governments of 23 EU
countries agreed to a new defense arrangement aimed at improving military cooperation
within the bloc in an agreement
that is scheduled to come into
force next month.
The permanent structured co-
operation on defense, or Pesco,
proposes increased military
spending and cooperation, providing a way to overcome restrictions on individual EU member
states’ defense budgets. It also
comes as the Trump administration has intensified Washington’s
longstanding push for Europe to
shoulder more of the financial
burden of its own defense.
Of the EU’s 28 members, five
countries didn’t sign the agreement on Monday. Britain is leaving the bloc and Denmark has
an opt-out on defense matters.
Ireland, Malta and Portugal have
yet to sign. EU officials have
said some of the abstainers are
thinking of joining and have until
December to decide, when the
pact becomes legally binding.
—Julian E. Barnes
and Robert Wall
FRANCE
Paris Remembers
2015 Attack Victims
Families of the victims of
France’s deadliest terror attacks
stood alongside President Emmanuel Macron on Monday to
honor the 130 people killed two
years ago when Islamic extremists attacked the City of Light.
A crowd joined them on the
memorial sites to lay roses and
light candles in memory of the
victims.
Dozens of families and Parisians gathered outside the Bataclan concert hall, where extremists opened fire on a dancing
crowd and held hundreds hostage in an hourslong standoff
with police. Ninety people were
killed.
—Associated Press
CHAIDEER MAHYUDDIN/AGENCE FRANCE-PRESSE/GETTY IMAGES
Rescue efforts were under
way Monday after a strong
earthquake near the border
between Iraq and Iran killed at
least 414 people and injured
many more.
The U.S. Geological Survey
said the epicenter of the magnitude-7.3 quake was in Iran
about 20 miles south of Halabjah, a city in Iraq’s Kurdish region. It took place at 9:18 p.m.
on Sunday.
“The magnitude of the disaster is huge,” Esmail Najjar,
the head of Iran’s National Disaster Management Organization, said on Iranian state television. “It is unprecedented in
this area.”
Iranian officials said that in
addition to 407 killed in Iran,
at least 6,700 were injured. In
Iraq, the Interior Ministry said
seven people were killed and
321 injured.
In Iran, military forces were
mobilized, and authorities
sent helicopters to transport
the injured. Hundreds of aid
workers and rescue teams
were dispatched to provide
food, tents and blankets, state
television said.
The worst-affected areas in
Iran were Sarpol Zahab, Qasr
e-Shirin and Salas Babajani,
three towns close to the border with Iraq, according to
state television.
Sarpol Zahab was hit especially hard. At least 236 people
THE WALL STREET JOURNAL.
* ****
EU Snubs U.S. Calls to Raise Pressure on Iran
BY LAURENCE NORMAN
BRUSSELS—The European
Union’s top diplomat rebuffed
proposals from Washington to
ratchet up pressure on Iran,
saying the bloc has no plans to
discuss new sanctions on Tehran.
The U.S., following the administration’s review of Iran
policy, has urged allies in re-
cent weeks to raise the cost to
Iran of advancing its ballisticmissile program and stoking
conflicts in the region.
European officials said they
would work with Washington
on those issues but are lobbying the U.S., in exchange, not
to abandon the Iranian nuclear
deal, in which Tehran agreed
to significantly scale back its
nuclear activities in exchange
for the lifting of international
sanctions.
President Donald Trump,
who has called the 2015 nuclear accord the “worst deal
ever,” has urged Congress to
amend U.S. domestic legislation to threaten reimposition
of sanctions if Iran takes steps
not directly outlawed by the
accord. That includes advancing Iran’s missile program.
ANCIENT BRICK
OLD BRICK
Impressive but outdated.
Handsome, but past its prime.
But EU foreign-policy chief
Federica Mogherini, who returned from meetings on the
nuclear agreement in Washington last week, has said new
sanctions aren’t on the
agenda. “We didn’t discuss—
not today, not last week...
about sanctions, further sanctions, from the European
Union side on Iran,” she said
on Monday.
THIN BRICK
Shallow and frail.
POD SQUAD: Conservation officers and environmental activists
try to refloat stranded sperm whales in Aceh Besar, Indonesia.
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THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | A11
NY
WORLD NEWS
BY PAUL HANNON
LONDON—The head of Lebanon’s central bank tried to reassure jittery markets after a
week of turmoil over the resignation of the country’s prime
minister, saying the worst of
the crisis was over but policy
makers were prepared to intervene if necessary.
Prime Minister Saad Hariri’s
announcement that he was
stepping down and a Saudi decision to order its citizens out
of the country have thrust Lebanon to the forefront of a regional struggle between Saudi
Arabia and Iran, pushing yields
on Lebanese government bonds
higher and increasing the cost
of buying insurance against a
possible default. Both are signs
that investors regarded Lebanon as a higher risk.
In an interview, Bank of
Lebanon
Governor
Riad
Salameh said he expects yields
to fall back over coming days
and that the country’s banks
haven’t reported an unusual
outflow of funds.
Mr. Hariri said Sunday he
would return to Beirut from
Riyadh within days, one of a
number of recent developments that Mr. Salameh said
had helped cool the crisis.
Meetings between political
parties within Lebanon have
“helped to stabilize the unity
in the country,” he said.
The price of Lebanon’s fiveyear dollar-denominated bonds
has fallen by 7% in the past
week, while the cost of insuring
its debt has risen to its highest
level this year amid concerns
about default.
Mr. Salameh said he believed those moves have gone
too far, and “a correction
should be in place through the
natural forces of the market.”
But he didn’t rule out action by
the central bank to nudge the
market in the desired direction.
Lebanese Take Crisis in Stride
War-weary country now faces political turmoil; ‘people forget how used to this we have become’
Lebanon’s prime minister
has resigned. His powerful
patron, Saudi Arabia, has
vowed to turn up the heat on
the small Middle Eastern
country. The powerful LebaBy Nazih Osseiran in
Beirut and Margherita
Stancati in Riyadh
nese paramilitary group Hezbollah has accused the kingdom of warmongering. And
European leaders are sounding the alarm about Lebanon’s territorial integrity.
But the Lebanese are
treating the soaring tensions
with Saudi Arabia as just another bump in the country’s
turbulent history.
“We have handed over our
fate to God a long time ago,
so we do not care about
these developments,” said
Walaa Hammiyeh, a 20-yearold college student who was
sitting in a garden in downtown Beirut on Monday.
Having endured a civil
war from 1975 until 1990,
and a brief but deadly conflict between Hezbollah and
Israel in 2006, turbulence is
a familiar state of affairs in
Lebanon. The country didn’t
have a government for 29
months, until about a year
ago. Meanwhile, the Syrian
conflict next door has left
Lebanon with more than one
million refugees.
“We have a blessing that
we are able to accommodate
all situations,” said Lebanon’s Economy Minister
Raed Khoury.
Lebanon’s current challenges stem from being
caught in the middle of a rivalry between two regional
powers: Saudi Arabia and
Iran, an important backer of
Shiite Muslim Hezbollah.
Saad Hariri, the leader of
Lebanon’s main Sunni Muslim political bloc, abruptly
stepped down from the position of prime minister on
Nov. 4, citing the negative
role of Hezbollah and Iran in
JAMAL SAIDI/REUTERS
Central
Banker
Sees Calm
Returning
A Lebanese artist painted a portrait of Prime Minister Saad Hariri, who resigned this month, during a marathon in Beirut on Sunday.
Coalition to Reopen
Yemen’s Airports
And Sea Facilities
Saudi Arabia said the coalition fighting Shiite rebels in Yemen will begin reopening airports and seaports in the Arab
world’s poorest country, days after closing them over a rebel
ballistic-missile attack on the
Saudi capital, Riyadh.
Monday’s announcement
from the Saudi mission at the
United Nations came after the
coalition fighting Yemen’s
Houthi rebels and their allies
faced widespread international
criticism over the closure, with
the U.N. and aid groups saying
it could bring millions of people
closer to “starvation and death.”
“The first step in this process will be taken within 24
hours and involves reopening
all the ports in areas controlled
by” Yemen’s internationally recognized government, which the
Saudi-led coalition backs, the
mission’s statement said. Those
ports are in Aden, Mocha and
Mukalla.
For ports in rebel-held or
disputed territories, such as
Hodeida, the mission said it
had asked the U.N. to send a
team of experts to discuss
ways to make sure weapons
can’t be smuggled in.
—Associated Press
the region. That triggered a
new political crisis in a
country already strained by
sectarian tensions.
The U.S. and its European
allies have appealed against
outside interference in Lebanon’s internal affairs.
The European Union’s foreign-policy chief, Federica
Mogherini, said the bloc’s
head of delegation in Riyadh
met with Mr. Hariri on Monday for the second time in
four days and said she would
meet with Lebanon’s foreign
minister on Tuesday. “We expect no external interference
in this national agenda and
we believe it is essential to
avoid importing into Lebanon regional conflicts, regional dynamics, regional
tensions that have to stay
out of the country,” she said.
Mr. Hariri announced his
resignation from Riyadh,
arousing suspicions that
Saudi Arabia, the chief patron of Mr. Hariri’s political
bloc, forced him to quit. People familiar with the matter
said Saudi officials pressured
the premier to step down
over his refusal to take a
more hard-line stance against
Hezbollah, which both Saudi
Arabia and the U.S. consider
a terrorist organization.
In a live interview he gave
on Sunday night to Future
TV, a television channel
linked to his political party,
Mr. Hariri said he would return to Lebanon within days.
Mr. Hariri, in his Sunday
interview, said he “will not
allow a regional war in Lebanon.” The country’s Christian
president, Michel Aoun, an
ally of Hezbollah, on Monday
said he looked forward to Mr.
Hariri’s return to Lebanon.
In Lebanon, many also
play down the possibility of
a confrontation with Saudi
Arabia. “They are practicing
psychological warfare on us.
That is the only thing that
they are doing,” said a Lebanese security officer.
Tens of thousands of people turned out on Sunday to
run in and watch the Beirut
marathon. After the event,
people danced and sang as a
DJ pumped out pop tunes.
“What is happening is
worrying, but people forget
how used to this we have become,” a man who provided
only his first name, Ahmad,
said as he watched his wife
and daughter dance nearby.
—Laurence Norman, Summer
Said and Raja Abdulrahim
contributed to this article.
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A12 | Tuesday, November 14, 2017
THE WALL STREET JOURNAL.
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THE WALL STREET JOURNAL.
NY
Tuesday, November 14, 2017 | A13
WORLD NEWS
Pressure Rises on Poland
To Stem Nationalist Tide
Poland’s ruling party faced
growing criticism over its response to a weekend rally organized by nationalist groups,
as opposition lawmakers and
others accused it of largely
turning a blind eye to a rising
tide of racism and xenophobia.
Israel on Monday called for
Polish authorities to “act
against the organizers” of the
march, in which some carried
banners that read “White Europe,” “Europe Will Be White”
and “Clean Blood.” Opposition
lawmakers called the event a
disgrace.
Some 60,000 people showed
up for the rally, many of whom
said they were only there to
celebrate the country’s 99th
anniversary of independence.
Many government officials
have responded to interna-
tional criticism but avoided an
outright denunciation of the
march and the nationalist sentiment shared by much of the
base that has kept it in power.
The Law and Justice Party
swept into office in 2015, decrying what it described as
corrupt postcommunist elites
and promising a fairer division
of spoils from the country’s
economic transformation. It
has opposed immigration from
Muslim countries and chafed
against European Union rules—
particularly on refugee policy.
Late Monday, Polish President Andrzej Duda, a former
member of the party who has
recently butted heads with it,
said there was no place in the
country for anti-Semitism and
“sick nationalism,” some of
the strongest words of condemnation.
Earlier, the foreign ministry
strongly condemned “views
springing from racist, anti-Semitic or xenophobic convictions,” but defended the march
as an event attended by “thousands of people who wanted to
peacefully manifest their patriotic feelings.”
Poland’s criminal code bans
promoting racist political
movements or ideas. Patryk
Jaki, a deputy justice minister,
called the banners shameful
and said there should be an investigation. But he added that
he “wouldn’t want the few
banners to eclipse the idea of
the whole march.”
A spokesman for the prosecutors’ office in Warsaw said
police were investigating and
were expected to pass on relevant evidence.
The march, which has taken
place annually since 2010,
commemorates the anniver-
DONAT BRYKCZYNSKI/BE&W/ZUMA PRESS
BY WIKTOR SZARY
Some 60,000 people marched in Warsaw to commemorate Poland’s Independence Day on Saturday.
sary of Poland regaining its independence in 1918. It has
grown increasingly popular.
One of the organizers, the
National Radical Camp, presents itself as the heir to a
1930s fascist movement of the
same name, which worked to
rid Poland of Jews in the years
just before the Holocaust. The
second group, All Polish Youth,
is also named after an antiJewish interwar movement.
Grzegorz Schetyna, head of
Poland’s largest opposition,
center-right Civic Platform
party, said ruling-party officials, including the powerful
party chairman Jaroslaw Kaczynski, were “political fathers”
to the Saturday events.
European Commission Vice
President Frans Timmermans is
due to talk about the situation
in Poland in a debate with the
European Parliament in Strasbourg, France, on Wednesday.
of the biggest dividend payers
in the U.S., but it has struggled
to generate profits and cash
flow from its industrial operations in recent years to cover
the payout.
“We understand this is an
extremely painful action for
our shareholders, our owners,”
Mr. Flannery said. “It’s not a
decision we took lightly.”
The company, one of the
original members of the Dow
Jones Industrial Average and
one of the most widely held
U.S. stocks, has paid a dividend
since 1899. GE last cut its dividend in 2009, when it reduced
the payout to 10 cents a share
from 31 cents.
When he was named CEO in
June, Mr. Flannery said the
dividend was safe, but he recently warned that his thinking
had evolved during his portfolio review. On Monday he said
the company’s cash flow projections have changed dramatically. “Fundamentally that dividend was predicated on us
growing to a certain level that
we just didn’t see,” he said.
Former CEO Jeff Immelt referred to cutting the dividend
as the worst day of his tenure.
Mr. Immelt revamped the
company over his 16 years, including selling media, plastics,
appliances and most of financial services. He also made
some ill-timed deals in the oil
and power markets. While the
company changed substantially,
it didn’t increase cash flow.
Earlier this year, under pressure from Trian, Mr. Immelt
pledged to cut annual spending
by $2 billion. After lowering financial targets last month, Mr.
Flannery pledged to cut an additional $1 billion in spending,
though he gave few new details
Monday on his cost-cutting
plans. He did promise to cut
$400 million from GE’s digital
efforts, which had been a priority during Mr. Immelt’s tenure.
—Cara Lombardo contributed
to this article.
GE
Continued from Page One
long-term plan means the
shares will be “dead money” in
the interim.
“If that is all you were going
to say, why did we have to wait
from July until November?”
she said.
Mr. Flannery said he wasn’t
surprised by Monday’s sharp
selloff. “We announced a major
cut in our dividend and a major
cut in our guidance in 2018,”
he said after the meeting. “We
had disappointing news today—no sugarcoating that.”
It may be a challenge for Mr.
Flannery to fetch top prices for
some of the businesses he
identified as noncore, since
some of them are in cyclical industries that are under pressure. GE also has owned some
of the businesses for decades,
meaning it could face a big tax
hit on a straight sale. Mr. Flan-
nery said GE could choose to
spin off assets or form joint
ventures instead.
The company set new financial targets for 2018 that were
well below its previous goals. It
now expects adjusted earnings
per share of $1 to $1.07. For
years, GE had promised investors it would deliver $2 a share
in 2018 earnings. The company
changed CEOs earlier this year
as it began to struggle to reach
that target.
Mr. Flannery compared his
first 100 days as CEO to his
previous role running GE’s
health-care division. There was
pressure to sell that unit when
he arrived as CEO in 2014, but
he found a way to fix the unit’s
problems while still keeping
open the option to unload it.
The CEO, who has been with
the company for three decades,
said he is building a leadership
team of “fresh eyes and people
with institutional memory.”
Since he took over he has made
several management changes.
ALWYN SCOTT/REUTERS
FROM PAGE ONE
GE Chief John Flannery said
conditions will be difficult.
He appointed a new finance
chief and head of GE Power,
and two GE veterans, the head
of marketing and the top international executive, recently announced their departures. On
Monday, Mr. Flannery said he
is revamping compensation for
senior executives, lowering the
cash portion and giving 50% of
their pay in equity.
In addition to shedding its
century-old transportation and
lighting businesses, Mr. Flannery said the company would
look to sell its stake in Baker
Hughes, an oil-field-services
provider. GE owns about twothirds of the company, which
has a market value of about
$40 billion. Shares of Baker
Hughes fell 3.2% on Monday.
GE also unveiled a restructuring of its board of directors,
saying it would reduce its
membership to 12 people, including three new members.
GE currently has 18 directors,
including Mr. Flannery and Ed
Garden, a co-founder of activist
Trian Fund Management,
which is a large GE investor.
The new quarterly dividend
will be 12 cents a share, down
from 24 cents a share. GE
would reduce the payment
from $8.4 billion to $4.2 billion, or a dividend yield of
about 2.5% based on Monday’s
close.
The industrial giant is one
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
A14 | Tuesday, November 14, 2017
Continued from Page One
gled into the U.S. Most of the
relics were seized by federal
authorities, and Iraq has since
petitioned the Justice Department to return items that Iraqi
officials believe were stolen
from their country.
Archaeologists and biblical
scholars now say there are
questions about the origins
and authenticity of the rest of
the Green collection. That has
scared away some researchers
from the collection and the Bible museum over concerns
about working with possibly
looted antiquities. It has also
cast a shadow over the Nov. 17
opening of the museum the
Green family built, in part to
house its collection.
“The Greens are good people, and they wanted to find
important artifacts to study,
but the situation may end up
hurting some of the scholars
and students they wanted to
help,” said Josephine Dru. She
was curator of the collection’s
papyri for more than three
years until she left last fall, in
part, over the museum’s handling of manuscripts with no
clear ownership records.
Mr. Green and his family
have amassed a $205 million
collection of roughly 40,000
artifacts over the past eight
years, spanning Egyptian
mummy masks from the time
of Moses to sacred scrolls inscribed by rabbis and monks
to a copy of the Bible once
owned by Elvis Presley.
The collection was planned
for inclusion in the 430,000
square-foot Museum of the Bible. That’s as big as the Smithsonian’s new National Museum
of African American History
and Culture.
Yet for the past three years,
staff members at the museum
have been sifting and rejecting
potential donations from the
Green collection that carried
lingering questions of provenance, its director David Trobisch said. Most of the Greens’
antiquities remain with Hobby
Lobby, the family owned artsand-crafts chain.
Mr. Green said his 2010
purchase in Dubai was the
misstep of an amateur, an unfortunate mix of enthusiasm
and inexperience. Boxes of the
items shipped to the Hobby
Archaeologists and
scholars say there are
questions about the
Green collection.
Lobby headquarters in Oklahoma were mislabeled as “ceramic tiles,” and several boxes
slipped undetected past U.S.
customs inspectors before the
scheme was uncovered, according to authorities.
“We made mistakes, but
we’ve learned from them,“
said Mr. Green, 54 years old.
Mr. Green said he had no idea
the deal would imperil the
reputation of the museum he
long championed.
Among academicians, the
matter remains unresolved. Bible scholars Candida Moss at
the University of Birmingham
and Joel Baden of Yale have
just published a book, “Bible
Nation: The United States of
Hobby Lobby,” that said Mr.
Green acquired objects with a
“naiveté that begins to look
willful.”
Roberta Mazza, a papyrologist at the University of Man-
DANCE
Continued from Page One
chemistry and the social sciences and for the overall winner.
This year’s 53 entrants, hailing from universities in Brazil,
the U.S., France and elsewhere,
submitted performances about
disrupting the rewarding properties of nicotine, set in part to
“Purple Rain,” as well as a
Bhangra-style dance using a remix of the “Game of Thrones”
soundtrack meant to explain
how a mutated tumor suppressor affects metabolizing nutrients. Past videos have had
soundtracks ranging from
Tchaikovsky to Notorious B.I.G.,
and dancers playing characters
with titles like “photon,” “spermatocyte” and “Polio virus.”
Nancy Scherich, the Ph.D.
candidate at the University of
California, Santa Barbara, who
engineered the aerial performance, recruited friends from
In the beginning
The grandson of a Pentecostal preacher, Mr. Green
grew up in the small town of
Bethany, Okla. His father, David, transformed a pictureframe business into a chain of
more than 750 retail stores.
The elder Mr. Green remains
chief executive of the family
business, which last year had
$4.4 billion in sales.
Steve Green married young
and joined the family business. He stepped onto the
public stage after the company won a Supreme Court
case three years ago to exempt it from a federal manher dance troupe to help. Before
the project, Ms. Scherich said
the other dancers never asked
much about what she studied.
“It was, ‘Oh, she does math.
That’s weird. Let’s dance.’” Once
they began discussing the rationale behind the choreography,
she said, “They were interested
all of a sudden. To me, that was
a huge success.”
Last year’s contest winner
was Jacob Brubert, who spent
years as a Ph.D. student at the
University of Cambridge trying
to make a better prosthetic
heart valve. While the dancing
cow and pig, stand-ins for an
animal-based artificial valve,
embrace the hula-hooping
woman (representing blood),
another blood cell gets shoved
into a pool by a tap-dancing duo
representing a mechanical valve.
“Every scene was a couple of
years of thinking,” Dr. Brubert
said. “It just seemed like the
coolest, craziest way to turn a
rather large book that will probably only be read by a handful
of people into something that
Steve Green, Hobby Lobby president and chairman of the Museum of the Bible in Washington, D.C.
Centers of Sacred Works
Religious museums are rare, but these institutions are known for exploring issues—and objects—of faith.
Museum of the Bible
Washington, D.C.
Built in 2017
Museum of Islamic Art
Qatar
Built in 2008
Sweeping the Bible's history, this museum has
3,000 retired Torahs and a 3rd-century copy of
Psalms 112-114.
I.M. Pei designed this museum, which contains
800 Quran manuscripts and a 15th-century
‘chessboard garden’ carpet.
Objects in collection:
2,840
Objects in collection:
800
Size:
430,000 square feet
Size:
382,118 square feet
lem’s biggest antiquities
dealers, Mr. Green said, mostly
families who had run shops
for several generations.
After the Dubai trip in 2010,
Mr. Carroll said he twice told
Mr. Green to end the purchase
negotiations because of “issues of provenance” with the
cuneiform tablets. He said Mr.
Green told him, “My family is
not averse to risk.” Mr. Green
didn’t dispute Mr. Carroll’s account.
Israeli authorities later said
the dealers in Dubai churned
out fake invoices and concocted histories for the Iraqi
antiquities they sold to Mr.
Green. Israel has since charged
five dealers in Jerusalem with
tax fraud for their part in orchestrating the deal. Emails to
the men seeking comment
weren’t returned.
In summer 2010, a Hobby
Lobby lawyer invited a cultural-heritage law expert from
the DePaul University College
of Law, Patty Gerstenblith, to
give a presentation to Mr.
Green, Mr. Carroll and others
on the best practices for collecting antiquities. Mr. Summers, the museum’s president, said later it was
intended to help Messrs.
Green and Carroll steer clear
of legal trouble.
Ms. Gerstenblith said a
staff member told her Mr.
Green was considering buying pieces from Iraq. She
emailed a report to Hobby
Lobby that summarized her
presentation.
“An estimated 200,000 to
500,000 objects have been
looted from archaeological
sites in Iraq since the early
1990s; particularly popular on
the market and likely to have
been looted are cylinder seals,
cuneiform tablets,” said the
report, which was in court
documents.
“Any
object
brought into the U.S. with Iraq
declared as country of origin
has a high chance of being detained by U.S. Customs.”
Hobby Lobby lawyers later
told federal investigators they
never shared Ms. Gerstenblith’s letter with Mr. Green,
court papers said.
Dead-end deal
Jewish Museum
New York
Founded in 1904
Angkor National Museum
Cambodia
lection, a breathtaking pace
for antiquities.
Mr. Carroll said his job was
to flag potential purchases.
The Green family decided at
closed-door meetings whether
to buy. Often, Mr. Carroll said,
he “had no idea an acquisition
had been made until the items
showed up” at company headquarters. Mr. Green didn’t dispute the description.
Cary Summers, the Bible
museum president, said Mr.
Carroll was encouraged to
seek out large private collections, which included a 10,000piece lot of biblical Americana
in Maryland. Museums typically cherry-pick from private
holdings rather than buy in
bulk.
Mr. Green accompanied Mr.
Carroll on a few buying trips
to Jerusalem and Europe between 2009 and 2011. The sellers included some of Jerusa-
On Dec. 8, 2010, Mr. Green,
through Hobby Lobby, agreed
to buy the artifacts he had
seen in Dubai. One of the dealers suggested shipping the
pieces via FedEx. Mr. Green’s
executive assistant agreed and
wrote on Dec. 23 “as long as
you keep the value of each
package under $2,000, they
will not have to forward it to
our broker to clear it through
Customs,” court documents
said.
Mr. Carroll said he didn’t
advise Mr. Green’s assistant on
the matter and that he was
shocked the Greens proceeded
with the deal after Ms. Gerstenblith’s presentation.
Three days later, the dealer
falsified the labels and
shipped eight packages to
Hobby Lobby, each valued
from $250 to $300. The first
three sailed through customs
in Memphis, Tenn.; the next
five were stopped and triggered the government investigation.
By 2012, Mr. Summers said,
Mr. Green decided to fire Mr.
Carroll, who left behind scant
notes on the provenance of
thousands of purchases, according to two curators assigned to review them.
Mr. Carroll said the Greens
could have required the dealers to submit relics’ ownership history. “Admittedly,” he
said, “it was not collected by
me.”
self well,” she said. “How could
you make a physical dance video
about things that aren’t physical?”
After her boyfriend urged her
to tap into her aerial dance
skills, she devised a performance in which she and her fellow aerial dancers hung upside
down creating braided loops,
then entered a techno-club style
world representing matrices.
Her character, known as a kernel, ultimately saves herself
from annihilation.
“The more esoteric the subject, the better the dance,” said
John Bohannon, a contributor to
Science who created the contest
a decade ago when he was
working on his own Ph.D. in molecular biology and wanted to
jazz up a party for colleagues.
Some scientists take a
more literal approach.
Diana Davis, now a visiting
assistant professor of mathematics at Swarthmore College,
produced and danced in a 2012
video about her thesis, “Cutting
sequences on translation sur-
faces.” She said some other performances she’s seen have superfluous rhythmic features and
unnecessarily complex plotlines.
“I think they’re distracting,” she
said. “Focus, people.”
Dr. Davis’s work looks at
closed-path loops, in which a
journey along a line starts and
ends at the same place—like
along the equator—and what
happens when the path is adjusted.
Shot from a camera looking
down from a ceiling, her video
shows a dancer leaping across
two adjoining pentagons. An
arm disappears across the yellow-painted edge of one pentagon and reappears at the yellow
edge of the other. Then a leg.
Then the rest of the dancer, representing the connectivity
across planes.
“It’s art, in addition to being
math,” Dr. Davis said of the finished product. She lists the production—which won the physics
category—on her résumé and
shows it regularly during academic speaking engagements.
Built in 2007
It owns a section of a 16th-century synagogue
wall and shows the work of such modern
painters as Amedeo Modigliani.
This museum chronicles the golden era of the
Khmer Empire, including a gallery featuring
1,000 Buddhas.
Objects in collection:
30,000
Objects in collection:
1,700
Size:
94,000 square feet
Size:
161,458 square feet
Source: the museums; Photos: Museum of the Bible; Museum of Islamic Art; Zuma Press (Jewish Museum); Reuters (Angkor)
THE WALL STREET JOURNAL.
date to pay for certain contraceptives for its workers. The
family had argued the requirement conflicted with its Christian faith.
For Mr. Green, who remains
influential in evangelical circles, the dream of building a
Bible museum helped inspire
him to collect antiquities. He
said he knew from the start
that he would need expert
help.
In 2009, Mr. Green started
working with Scott Carroll,
who had been the adviser for
Robert Van Kampen, a Chicago
investor who had the largest
private Bible collection in the
U.S. at the time. That collection became part of a religious
theme park in Orlando, Fla.,
called the Holy Land Experience.
Mr. Carroll, who has a doctorate in history from Ohio’s
Miami University, was contro-
versial in the field of antiquities for using a soapy solution
to break apart the papyrus
layers that form mummy
masks. In a 2012 video, filmed
by a research arm of the Green
collection, Mr. Carroll washes
a kohl-eyed, papery mask in a
sink, then peels it apart looking for scraps of legible writing. “Archaeology is a destructive
science,”
he
tells
onlookers in a later video.
Holger Strutwolf, director
of the Institute for New Testament Textual Research at the
Bible Museum in Münster,
Germany, said, “The way Scott
Carroll treats mummy cartonnage comes close to willful
damage.” Mr. Carroll said
other scholars have dismantled mummy masks.
With Mr. Carroll on salary,
the Green family went on a
buying spree, adding roughly
18 objects a day to their col-
DEAN MORALES
BIBLE
chester, has criticized Mr.
Green’s collecting methods in
lectures at scholarly conferences on art crime and biblical
literature. She said she noticed
an ancient Coptic fragment
from the New Testament Book
of Galatians, displayed at an
exhibit of the Green collection
three years ago, which she believed she had earlier seen for
sale on eBay. It offered no
ownership history, she said.
“I don’t care if a billionaire
wants to open a museum so
long as it’s ethical,” Ms. Mazza
said.
The Bible museum’s director, Mr. Trobisch, said the
Green collection’s records indicate the family didn’t buy
the Coptic fragment on eBay.
Still, he said, the museum has
no plans to exhibit it “until we
can research it thoroughly.”
Mr. Trobisch recently advised Mr. Green to repatriate
the fragment to Egypt, which
Mr. Green said he would consider.
When the museum opens,
its permanent collection will
consist of just 2,840 vetted
objects, Mr. Trobisch said, a
fraction of what the Greens
own. The museum has had to
distance itself from controversy over the collection, he
said: “We feel like we’re paying for the sins of the father.”
Jana Mathews, a medievalist at Rollins College, said
scholars insist on knowing the
provenance of objects because
demands for proper paperwork discourages looting.
The museum has shifted its
focus from displays of ancient
art and artifacts to more interactive, theme-park experiences. Rooms will give a firsthand view of life in biblical
times, including a life-size village in first-century Galilee.
Elsewhere, walk-through exhibits will re-enact famous Bible stories—like Moses parting
the Red Sea. An aerial-simulation ride will zoom passengers
around Washington, D.C., to
view scriptures inscribed on
buildings.
Museum of the Bible Vice
Chairman Robert Cooley said
the board learned about the
government’s six-year smuggling investigation only when
Hobby Lobby was close to
signing the settlement. He
said the museum board felt
“shortchanged on the facts”
and has since hired its own
lawyer to help the board
toughen its provenance protocol and keep close watch on
acquisitions.
Mr. Green said he didn’t tell
the board sooner because he
considered it a Hobby Lobby
matter.
Last month, the board also
hired its own cultural-heritage
lawyer, Thomas Kline, to vet
the pieces remaining in the
museum’s collection.
“Before this, we weren’t
collectors or museum-goers,”
Mr. Green said. “We didn’t
know we needed to ask for all
this paperwork.”
STEPHEN VOSS FOR THE WALL STREET JOURNAL
IN DEPTH
Nancy Scherich, a mathematician, dances out her Ph.D. thesis.
has now been seen by an awful
lot of people.”
His performance has garnered more than 80,000 views
on YouTube since last fall.
This year’s winner, Ms.
Scherich, spent about two
months mapping out her performance, sketching storyboards
and choreographing a dance inspired by her thesis, titled
“Braids: Discrete Representations of the Braid Groups.”
She said she had known of
the contest for years but struggled to imagine her own work in
terms of dance. “I never really
thought that math could lend it-
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THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | A14A
NY
* *
GREATER NEW YORK
Tax
Lawsuit Will Test Gun Protections GOP
Proposals
Sandy Hook families
challenge federal
shield for gun makers
against liability claims
Nearly five years after a
shooter killed 20 children and
six adults at Sandy Hook Elementary School, a lawsuit
brought against the gun industry by families of those killed
is slated to be heard Tuesday
in Connecticut’s highest court.
The case will be a test on
the federal protections that
firearms manufacturers have
against liability claims.
In their 2014 lawsuit, attorneys for the victims’ families
said civilians shouldn’t be allowed to own high-powered rifles. The defendants have
maintained they are exempt
from legal claims holding
them responsible for crimes
committed with their products
under a 2005 federal law
called the Protection of Lawful
Commerce in Arms Act.
In the Newtown, Conn.
shooting, 20-year-old Adam
Lanza used a Bushmaster
AR-15-style rifle manufactured
by the Remington Arms Co.
Connecticut Superior Court
Judge Barbara Bellis dismissed
the Sandy Hook case in October, saying the families failed
SPENCER PLATT/GETTY IMAGES
BY JOSEPH DE AVILA
A vigil was held last month in Newtown, Conn., calling for action against gun violence.
to prove that the gun manufacturer could have predicted
misuse of the weapon. Now,
the Connecticut Supreme
Court will rule on whether the
families’ claim can proceed.
James Vogts, an attorney
for Remington, declined to
comment. Josh Koskoff, a lawyer representing the nine families of victims and one survivor of the school shooting,
wasn’t available to comment.
The other defendants named
in the lawsuit are Camfour Inc.,
a firearms distributor, and Riverview Sales Inc., the East
Windsor, Conn., gun shop that
sold the Bushmaster rifle used
in the Sandy Hook attack. Attorneys for the companies
didn’t immediately respond to
requests for comment.
Legal claims against the
gun industry have had little
success since the passage of
the 2005 federal law. Courts
have allowed lawsuits against
gun sellers who knowingly sell
their weapons to individuals
barred from purchasing them.
But gun makers have been exempted from most claims, except those involving allegations of faulty products.
Attorneys for Remington said
in court papers that the federal
law intended “to protect firearm
manufacturers and sellers from
having to defend themselves
against claims exactly like those
made here.” The federal law allows some legal claims to move
forward. One such exemption,
which the families are pursuing,
is a claim of “negligent entrustment” in which a seller of product knows, or should know, that
the buyer likely would misuse
that product.
The “defendants ignored
myriad risks associated with
the mechanical power of the
weapon, the porous environment into which it was sold,
and mounting evidence that the
AR-15 had become the weapon
of choice for lone shooters
looking to inflict maximum casualties,” attorneys for the families said in court papers.
The families also alleged
the gun maker violated the
Connecticut Unfair Trade Practices Act, a consumer-protection law. The lower court ruled
that the families lacked the
commercial or consumer relationship with the gun company
required to make such a claim.
Connecticut’s Attorney General’s office submitted an amicus brief supporting the families’
consumer-protection
claim.
The National Rifle Association, the National Shooting
Sports Foundation and the
Connecticut Citizens Defense
League have submitted briefs
in support of the defendants.
Menendez
Jury Split,
But Must
Continue
Working
SETH WENIG/ASSOCIATED PRESS
Sen. Bob Menendez left a federal courthouse in Newark on Monday. Jurors in his corruption trial said they are deadlocked.
sentence.
The jury began meeting at 11
a.m. Monday. Although it was
the fifth day of deliberations,
Judge Walls ordered the panel
to start fresh because one juror
was replaced last week.
“We cannot reach a unanimous decision on any of the
charges,” the jury said in a note
to the judge three hours later.
“Is there any additional guidance? What do we do now?”
Defense attorney Abbe
Lowell called for a mistrial. “It
seems to me we should take
them at their word.”
Judge Walls disagreed. He
said he would ask them to
keep deliberating. “Go home
and have a good meal and a
good sleep, then come
back tomorrow to continue
your deliberation,” he said.
After the jury left the courtroom, Mr. Lowell objected. “It
feels a little like you’re telling
them that you need to reach a
verdict,” he said.
“This is a tried and true
method,” Judge Walls replied,
overruling the objection.
“Clearly there are jurors
who believe in my innocence,”
Mr. Menendez said outside the
courthouse. “I believe no juror
should be coerced.”
Deliberations were delayed Monday while the attorneys argued about whether
the jury may have been affected by press coverage of
the departure of juror Evelyn
Arroyo-Maultsby last week.
Ms. Arroyo-Maultsby, who
was excused to go on a cruise
for a family wedding, said she
would have voted to acquit Mr.
Menendez. Outside the courthouse Thursday, she said most
jurors think the defendants
aren’t guilty, including three jurors who are absolutely convinced. Another group is equally
firm on the other side, she said.
On Monday, after the judge
and attorneys met individually
with four jurors and three alternates, the judge decided that
deliberations would proceed.
Marley Dias drew international attention last year when
she decided to do something
about what she felt was a lack
of diversity in literature at her
school.
Her blog post calling for
donations of books featuring
black girls as main characters
turned into a viral social media
campaign
dubbed
#1000blackgirlbooks. Within a
month, people from around
the world sent Marley more
than 4,000 books.
Now 12 years old, the
eighth-grader from West Orange, N.J., has written the
book she felt was missing from
public schools: a story about a
black girl by a black girl.
“Marley Dias Gets It Done:
And So Can You!” is being published by Scholastic Inc. and will
be released Jan. 30. Marley said
she wanted to use her own experience in activism to show
anyone can make positive
changes in their communities
despite their age.
“I’ve always wanted to be an
author,” Marley said in a recent
interview. “I don’t really like my
creative writing and I didn’t
want to write a memoir because
I’m like 12. Why write a memoir
when you’re 12?”
One chapter, “The Activist’s
Toolbox,” is a blueprint for
young people seeking to make
social change. Another, titled
“Herstory,” touches on her book
drive, which has now collected
more than 10,000 books.
“The only books we’d read
with black characters at school
were slave narratives set in the
eighteenth and nineteenth centuries,” Marley writes. “Which,
while extremely important historically, can get depressing.
The range of black girl experiences is so much broader, and
deeper, and richer than that!”
Lionel Hush, principal of
Marley’s current school, Roosevelt Middle School, said her
campaign improved the school’s
literature offerings. “Coming
from a student’s perspective, it
QUEEN LILIUOKALANI TRUST
Student ‘Gets It Done’
With Her Own Book
BY ZOLAN KANNO-YOUNGS
BY KATE KING
BERKELEY, N.J.—New Jersey Rep. Tom MacArthur
brought in the big guns on
Monday as he sought to sell
the Republicans’ proposed tax
overhaul to constituents in one
of the country’s most highly
taxed states.
Treasury Secretary Steven
Mnuchin and Ivanka Trump,
the president’s daughter and
adviser, touted the two proposals under consideration in Congress, saying they are long
overdue measures that would
simplify the tax code and stimulate economic growth.
The discussion came as Republicans in Washington, D.C.,
and Mr. MacArthur pushed for
votes this week on bills that
they hope will mark the GOP’s
first significant legislative
achievement under Republican
President Donald Trump.
Democrats and some Republicans from highly taxed states
such as New Jersey, New York
and California are opposed to
the GOP’s tax proposals, which
would eliminate or cap deductions for state and local taxes.
In New Jersey, GOP Reps.
Leonard Lance and Frank LoBiondo have said they don’t support the legislation under consideration in the House, which
would cap the property-tax deduction at $10,000 and allow
no deductions for state income
Treasury Secretary
Steven Mnuchin and
Ivanka Trump visited
N.J. to promote bills.
BY THOMAS MACMILLAN
Just three hours after they
restarted their deliberations
Monday, jurors in the corruption trial of U.S. Sen. Bob Menendez announced they were
deadlocked.
Judge William Walls sent
the jury home early from federal court in Newark and told
them to return Tuesday to continue trying for a verdict. The
panel’s seven women and five
men are charged with deciding
the fate of Mr. Menendez, who
faces 18 counts, including bribery, fraud, and conspiracy.
Prosecutors say the twoterm Democratic senator was
part of a bribery arrangement
involving Florida eye doctor
Salomon Melgen, a co-defendant in the trial. For years, the
doctor provided the senator
with private flights and luxury
vacations in exchange for political favors, they allege.
Their lawyers say the government is criminalizing a longstanding and genuine friendship.
If
convicted,
Mr.
Menendez could serve prison
time. The most serious charge
carries a maximum 20-year
Get Boost
From D.C.
Notables
Marley Dias, in Honolulu in August, has traveled the U.S. talking about the need for diversity in books.
carries a significant amount of
weight,” Mr. Hush said.
Andrea Pinkney, executive
editor of the trade publishing
division of Scholastic, said she
hopes the book encourages
children to “galvanize their
strengths.” She declined to
specify the value of Marley’s
book deal.
In anticipation of the book’s
release, Marley has traveled
the country emphasizing the
importance of diverse characters in school books. She has
met former first lady Michelle
Obama, ballet dancer Misty
Copeland, singer Rihanna and
filmmaker Ava DuVernay. Marley has almost 15,000 followers on Instagram.
Marley said she has contin-
ued to meet children who feel
they can’t relate to what they
are studying in school.
“I feel like when I’m older—
like older, older—I guess I’ll feel
like, ‘Wow, when I was doing
that, that was a lot for a 12year-old to do,’ ” Marley said.
“But now it’s part of my life. Not
just being in the public eye but
thinking about social change.”
taxes. The Senate’s bill eliminates the deduction entirely.
Mr. MacArthur, a Republican
who represents southern New
Jersey’s Ocean and Burlington
counties, said he won’t support
the tax bill without a propertytax deduction, and believes the
$10,000 deduction would cover
“the vast majority of people in
this state.” He said the effect of
taking away deductions for
state income and sales taxes
would be offset by lower rates
overall and the elimination of
the alternative minimum tax.
Federal deductions for state
and local taxes make up 8.7% of
adjusted gross income for New
Jersey filers, according to an
analysis by the Tax Foundation.
Mr. Mnuchin, a former resident of California and New
York, said he understands the
plight of residents in highly
taxed states. The Treasury has
calculated that the proposed
tax overhaul would deliver tax
cuts for most families of four
and people earning up to
$300,000 in New York and New
Jersey, he said. “For people
who make $1 million in hightax states, there will be a tax
increase,” he said.
Mr. Mnuchin and Ms. Trump
discussed the tax plans in front
of a largely friendly crowd of
more than 100 in Berkeley
Township, a shorefront community that was battered by
superstorm Sandy. More than
half of the town’s residents are
senior citizens and tax deductions are important, Republican
Mayor Carmen Amato said. He
supports the House’s proposed
tax overhaul.
Mr. MacArthur said that if a
deduction for medical expenses
also is preserved, as the Senate
bill proposes, most New Jersey
residents should benefit. “I
have gone through every tax
bracket from the very poorest
to the very wealthiest,” he said.
“I have yet to find anybody
whose taxes don’t go down.”
Rep. Josh Gottheimer, a
Democrat who represents parts
of northern New Jersey’s
wealthy Bergen County, said
his constituents would see tax
hikes. “There’s no way to cut
these numbers that it’s not an
increase on New Jersey and a
huge favor to other states at
our expense.”
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A14B | Tuesday, November 14, 2017
NY
THE WALL STREET JOURNAL.
* *
GREATER NEW YORK
‘Meteor Shower’ Lights Up Broadway
ASSOCIATED PRESS
BY CHARLES PASSY
Amy Schumer stars in ‘Meteor Shower,’ a play by Steve Martin.
Call it a meteoric success,
Broadway-style.
“Meteor Shower,” the Steve
Martin play that stars Amy
Schumer, took in $1 million at
the box office last week, according to the Broadway
League, the trade group that
tracks the theater industry.
That figure represented 104% of
the show’s potential standard
gross. The extra sales came
from premium tickets, which
ran as high as $323 last week.
It was the first full eightperformance week for “Meteor
Shower,” which is still in previews. The comedy, which officially opens Nov. 29 and is
slated to run through Jan. 21,
looks to continue the box-office success in the weeks ahead
because it already has at least
$7 million in advance sales, according to Joey Parnes, one of
the lead producers.
Show insiders and industry
observers say the sales speak
to the drawing power of Ms.
Schumer, the stand-up comic
and film and television veteran
who is making her Broadway
debut with the production.
Mr. Parnes noted the other
major names associated with
“Meteor,” including Mr. Martin
and the Tony Award-winning
director Jerry Zaks. The cast
also features Keegan-Michael
Key, who is best known for his
work with Jordan Peele on
“Key & Peele,” a show on the
Comedy Central network.
When all the elements are
factored into the production’s
equation, Mr. Parnes said, “the
whole is greater than the sum
of its parts. Every single name
on our creative team is one
form of entertainment royalty.”
“Meteor Shower,” which
chronicles two couples en-
meshed in what the show describes as a “marital free fall,”
was produced at a cost of $3.9
million, according to Mr.
Parnes. Insiders say it is on
track to recoup its investment.
A major celebrity’s involvement with a show doesn’t
guarantee box-office success.
Consider Mr. Martin’s previous Broadway effort, the
2016 musical “Bright Star,”
which he created with the pop
singer-songwriter Edie Brickell. The show closed after four
months into an open-ended
run, though it is now playing
on tour.
Christopher DeJesus, center, and Thad Maceira of Cano’s Car Wash clean a customer’s car at the intersection of Westchester and Forest avenues in the Bronx. Sam ‘Cano’ Pesante, below left, owns the
pop-up car wash operation. Below right, a New York Police Department officer asks Mr. Pesante if he will be available to detail his personal car after he finishes his patrol.
Pop-Up Car Wash Offers Vehicle
Owners Pit-Crew Style Detailing
where Mr. Pesante has set up
his operation. Pop-up car washes
like this can be found across the
borough. Starting in December,
operators must obtain a car
wash license.
Mr. Pesante started his operation this summer after buying
a cargo van and outfitting it
with a 375-gallon water tank.
“Brick-and-mortar car washes
are less personal and the ancient machinery damages the
paint jobs of cars,” said Hector
Figueroa, who brought his Jeep
for a wash. “Curbside car
washes are more personal and
they don’t damage your car.”
—David ‘Dee’ Delgado
DAVID ‘DEE’ DELGADO FOR THE WALL STREET JOURNAL (3)
Drive down Westchester Avenue in the Bronx and you may
notice the cargo van parked next
to flags emblazoned with “Car
Wash” flapping in the wind. The
van hosts three men working
like a pit crew. One prepares
soaps and conditioners specific
to each customer’s request, the
second pre-washes with a pressure washer while the third lathers the surface close behind.
In 15 minutes or less they are
done with what owner Sam
“Cano” Pesante calls a mini detailing service. He charges $25.
There are few other options
for a car wash in the Woodstock
neighborhood of south Bronx
GREATER NEW YORK WATCH
A new
way,
a better
way
NEW YORK STATE
NEW YORK CITY
Economic Programs Mayor Seeks Ideas
Hearing Grows Tense On Internet Access
to buy a wedding suit.
ROBERTO COIN BOUTIQUE
Westfield World Trade Center
Oculus | Main Level C2
New York, NY | 212.287.1299
BLACK JADE COLLECTION | robertocoin.com
A legislative hearing on Gov.
Andrew Cuomo’s economic-development programs has raised
tensions between his administration and upstate legislators.
Mr. Cuomo, a Democrat, has
sought to revive the ailing upstate economy through a number of tax-break programs and
public-spending initiatives, but
parts of western New York have
continued lagging in job growth.
On Monday, at an annual hearing in Albany, Mr. Cuomo’s economic-development czar, Howard
Zemsky, presented a rosier picture, saying the confluence of
economic initiatives is having a
“transformative impact” throughout upstate and western counties.
State lawmakers are skeptical. Assemblyman Ray Walter, a
Republican representing Erie
County, said Mr. Zemsky only offered “platitudes,” and didn’t
convince him that there was a
connection between Mr. Cuomo’s
programs and economic improvements.
As Mr. Walter questioned Mr.
Zemsky, the Cuomo aide said
the Buffalo area Mr. Walter represents was struggling “for 40
frickin’ years” before Mr. Cuomo
stepped in. At another point Mr.
Zemsky spoke over Mr. Walter,
saying, “Blah, blah, blah.”
After the hearing, Mr. Walter
said, “For him to get hostile was
outrageous.”
—Mike Vilensky
Mayor Bill de Blasio’s administration wants advice from
companies about how to expand
affordable high-speed internet
access citywide by 2025.
The city on Tuesday plans to
issue a request for information
to internet-service providers and
other stakeholders. The request
is short of a formal solicitation
for proposals for a build-out that
could challenge cable giant Charter Communications Inc.’s market
dominance in New York City.
The request is meant to “maximize the benefits of competition,”
according to a draft reviewed by
The Wall Street Journal.
“One thing we know for sure
is that business as usual won’t
work, which is why we’re keeping the door open to new ideas
that will help us achieve success
in this critical endeavor,” Miguel
Gamiño Jr., the city’s chief technology officer, said in an emailed
statement.
A spokesman for Charter
Communications, known to its
customers as Spectrum, said New
York City is “one of the most
competitive telecom and internet
markets in the country, with a
host of wireline, wireless and
other technologies offering services to all customer segments.”
“Our products and services
provide the highest quality at
competitive prices,” said the
spokesman, John Bonomo.
—Mara Gay
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THE WALL STREET JOURNAL.
LIFE&ARTS
Tuesday, November 14, 2017 | A15
TURNING POINTS | By Clare Ansberry
Cultivating a
Life of
Gratitude
A SIMPLE “THANK YOU” isn’t
always enough.
Yolanda Avram Willis has spent
much of the past two decades
finding out as much as she could
about the families who risked their
lives to save her Jewish family
during the Nazi occupation of
Greece. She wanted to chronicle
their good deeds and give thanks—
and do so before it was too late.
“I’m 83,” she says. “I don’t
know how long I am going to be
around. I wanted to do this while I
have my mind.” Her mother and
aunts suffered from some forms of
dementia.
Ms. Willis recently completed a
book about her family’s experience,
“A Hidden Child in Greece: Rescue
in the Holocaust,” which she selfpublished through Authorhouse.
The process helped her, too, giving her purpose and deepening her
appreciation, says her son, Martin.
“The act of writing can help flesh
out experiences and makes you understand things better,” he says.
Feeling gratitude starts with a
realization of what we have received from others and what it
cost them, says Robert Emmons, a
psychologist and author at the
University of California, Davis,
who researches the effects of gratitude. It isn’t surprising then, he
says, that someone like Ms. Willis
“has overwhelming gratitude.”
Gratitude is good for us in many
ways. Studies have shown that it
strengthens our immune systems,
helps us sleep better, reduces
stress and depression and opens
the doors to more relationships.
But to reap those rewards, we
need to do more than feel grateful.
“The word ‘thanksgiving’ means
giving of thanks,” says Dr. Emmons. “It is an action word. Gratitude requires action.”
Most people aren’t very good at
it. Only 52% of women and 44% of
men express gratitude on a regular
basis, according to a 2012 gratitude
survey of 2,000 people in the U.S.
funded by the John Templeton
Foundation, a philanthropic organization that supports academic research. Those who are religious or
spiritual tend to be more grateful,
as are married couples, says Janice
Kaplan, author of “The Gratitude
Diaries,” who conducted the survey.
Younger people—18-to-24-yearolds—express gratitude less often
than any other age group, and when
they do, it’s often for self-serving
reasons: in the hopes that people
will be nicer to them in return.
Family and freedom top the list
of things that those surveyed are
most grateful for, Ms. Kaplan says.
Jobs rank last, except among those
who earn $150,000 or more. Apparently we don’t appreciate our
co-workers, or at least we don’t
tell them. Only 10% of the 2,000
people surveyed said they thanked
their colleagues. One reason: a perception that expressing any gratitude could lead to co-workers tak-
Ms. Willis’s family had fled to Crete and was in hiding there when German
troops began an airborne attack of the island on May 20, 1941.
FROM TOP: ROSS MANTLE FOR THE WALL STREET JOURNAL; YOLANDA AVRAM WILLIS (3)
The strangers who helped a woman’s family during
WWII gave her a clearer view on giving thanks
ing advantage of them, Ms. Kaplan
found—even though it actually encourages success. (Some 81% of
people in the survey said they
would work harder for a grateful
boss.)
People can get better at being
grateful, but it takes practice. Dr.
Emmons recommends keeping a
gratitude journal. Writing one to
three times a week about people,
events and things that make you
feel grateful is more effective than
daily entries—and don’t worry
about grammar. It’s important to
be specific so you can realize all
that went into an effort.
Paul Mills tried out the idea
with a group of about 50 to 60
heart patients at the Center of Excellence for Research and Training
in Integrative Health at the University of California, San Diego,
where he is director. The patients
kept journals for two months, recording things they were grateful
for. Family, friends and nature
topped the lists.
Some wrote only a few words,
others wrote pages several days a
week. But everyone who kept a
journal was less depressed, slept
better and had lower levels of inflammation than those who received the usual care but didn’t
keep a journal, Mr. Mills says.
People are understandably most
grateful when something good
happens. Finding gratitude in
heartache, loss, pain or trauma is
more difficult. But it can also help
us become more resilient and
deepen our appreciation of what
we do have, including the people
who helped us through.
Ms. Willis, who wrote about her
experiences during the Holocaust,
was 6 when war broke out in
Greece, forcing her well-known Jewish family to flee their home. For
the next four years, they were constantly relocating to avoid capture.
She and her younger brother,
Yannis, were separated from their
parents, Salvator and Karolla. A
baker and his family took Ms. Wil-
Yolanda Avram Willis, pictured in her Pittsburgh home, wrote a book about her
family’s experience in Greece during the Holocaust. Ms. Willis as a child with
her younger brother, left. Her father’s false identification papers, below.
lis in, saying she was their goddaughter whose parents couldn’t
afford to feed her. Later, she lived
with a widower. Ms. Willis never
knew her parents’ whereabouts,
the thinking being that if she was
captured, she might reveal their
location. After four years in hiding, Greece was liberated and the
family was reunited.
Ms. Willis devoted herself to
her studies and eventually went to
the U.S. on a Fulbright Scholarship
to study chemistry. She settled in
Pittsburgh, married, raised three
children and obtained her Ph.D. in
sociology from the University of
Pittsburgh.
Her parents and brother remained in Greece; her father died
in 1965 and her mother in 1987. In
1992, her brother died. Troubled
and erratic as a child, Yannis was
eventually diagnosed as paranoid
schizophrenic.
Although they were never close,
Ms. Willis says, his death touched
her deeply and sparked her search
of their past. She made the first of
several trips back to Greece in 1994
and was reunited with her rescuers.
Over the course of decades and
interviews, Ms. Willis discovered
that the baker and his family who
took her in were forced into hiding
and hunted by the Nazis for hiding
her. “It took multiple encounters
for the story to come out,” she
says. She remembers weeping in
her hotel room while listening to
her taped interviews.
In her book’s dedication, Ms.
Willis lists each of the 20 people
who helped along the way. Many
of them have died, but some of
their children and grandchildren
are alive. It’s important for them
to know their parents’ selflessness,
she says. Ms. Willis also dedicated
her book to her parents, “who
taught me gratitude.” During one
of her return trips to Greece, she
learned that her grateful father
had returned to Crete every Easter
to celebrate the Christian holiday
with her rescuers.
FOOD & DRINK
BY SAABIRA CHAUDHURI
TEA, THE WORLD’S most popular hot beverage, has long struggled with an image problem: People just aren’t willing to pay up for
a cup.
Now tea makers are launching
new drinks and marketing campaigns to convince people to pay
as much for a cup of herbal tea as
they would for a caffe latte.
“Our mission is to create a
modern-day tea culture,” says
Charlotta Oldham, Starbucks
Corp.’s tea category manager for
Europe, the Middle East and Africa. “I totally believe tea can be
as cool as coffee.”
By volume, tea remains the
dominant hot beverage of choice,
buoyed by drinkers in China, India
and the U.K. The world drank 1.7
trillion cups of tea last year, comfortably above the 984 billion cups
of coffee consumed, according to
Euromonitor. In the U.S., the number of cups of tea drunk climbed
6.5% between 2012 and 2016, while
tea sales grew 9.9%, meaning more
people are drinking pricier tea.
But the coffee industry rakes in
far more money, clocking a retail
value of $79.3 billion in 2016, compared with $42.7 billion for tea.
“The coffee boys have done a
much better job in marketing their
category than the tea boys,” says
William Gorman, executive chairman of the U.K. Tea and Infusions
Association.
Over the past 50 years, the coffee industry has boomed on the
back of a specialist coffee-shop
culture that has helped the industry charge fat premiums, although
there are signs growth is slowing.
“Meeting for a coffee” has become
synonymous with socializing, dating and business meetings, even in
typically tea-drinking nations such
as the U.K. and India.
Tea has struggled to spark the
same appeal.
Starbucks, widely credited with
spreading coffee culture the world
over through its 24,000 stores, in
July said it would close its 379
stand-alone Teavana stores, citing
underperformance. Starbucks still
sells tea drinks in its regular cafes,
but Howard Schultz’s promise to
“do for tea what we did for coffee”
remains unrealized.
Some blame the tea bag—invented in 1908 when New York tea
merchant Thomas Sullivan sent
out samples in silk bags—for tea’s
inability to command a premium.
Chris Brennan recently left his
local Starbucks in Albuquerque,
N.M., empty-handed after discovering it charges $4 for a cup of
tea. “I did a double-take,” recalls
the 40-year-old soccer club director. “There’s no way I was going to
pay that kind of money for a tea
bag in hot water.”
Tea companies are hoping betPlease see TEA page A16
GETTY IMAGES
TEA TURNS UP THE HEAT IN ITS FIGHT AGAINST COFFEE
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A16 | Tuesday, November 14, 2017
LIFE & ARTS
ART REVIEW
Winslow Homer’s Transforming Odyssey
An exhibition reveals how a sojourn in an English fishing village changed the American painter’s work
Worcester, Mass.
IF THE AMERICAN illustrator and
painter Winslow Homer had been
born in Italy or France a generation or two earlier, he might have
depicted grand mythological
scenes inspired by Ovid. But he
was born in Boston in 1836 and
died in Prout’s Neck, Maine, in
1910. By the time Homer was 19,
when he began a lifelong career
doing commercial illustrations and,
soon thereafter, pursued oil and
watercolor painting, the Realists
had purged painting of traditional
religious, historical and mythological subjects, and the Impressionists
were on the verge of painting not
the landscape but its light.
Homer’s most celebrated dramas, then—some of them played
out in the American countryside,
but most set on coastlines and at
sea—were Realist renditions of everyday struggles between nature
and human beings elevated to
mythical proportions. In his signature landscape “Hark! The Lark”
(1882), which Homer considered
his “very best” painting, three
young women working in a field
are suddenly halted by birdsong, a
scene Homer transforms, through
their repetitive gestures and startled expressions, into near melodrama. And he poses his actors like
Greco-Roman pediment figures in
his iconic seascapes “The Gale”
(1883-93), in which a woman, a
babe on her back, steels herself
against the North Sea’s winds, and
“The Life Line” (1884), the rescue
of a woman in danger of being
snatched back into roiling surf.
These three paintings are among
some 50 pictures by Homer in
“Coming Away: Winslow Homer
and England,” a splendid, thoughtprovoking exhibition at the
FROM LEFT: PHILADELPHIA MUSEUM OF ART; MILWAUKEE ART MUSEUM
BY LANCE ESPLUND
Homer’s ‘Hark! The Lark’ (1882),
above, and ‘The Life Line’ (1884), left
Worcester Art Museum that travels
this spring to Milwaukee. Co-organized by WAM’s Elizabeth Athens
and the Milwaukee Art Museum’s
Brandon Ruud, “Coming Away”
poses fascinating questions about
the fluid nature of aesthetic influence and about what it means to be
an American, a New England or
even a “Yankee” artist.
From March 1881 to November
1882, Homer lived among the inhabitants and painters of Cullercoats, a small fishing village on
England’s northeastern coast. The
show posits that this trip—more,
perhaps, than his years illustrating
the American Civil War and Reconstruction, or his yearlong sojourn in
France, from 1866-67—transformed
Homer, enabling him to develop his
mature vision as a renowned seascape painter. The argument, as
presented here, is sound.
“Coming Away” is divided into
three sections: before, during and
after his trip to England. Mixing
Homer’s pictures with those of
such painters as the British master
J.M.W. Turner and the French Realist Jules Breton, as well as photographs depicting nature and Classical antiquities, it shows not just the
power of artistic influence but the
authoritative inspiration of place.
Homer was infamously tightlipped concerning his personal life
and influences. Yet, to walk through
any major Homer exhibition is to
sense the impact of Turner, the PreRaphaelites and the French painters
Corot, Delacroix, Millet, Courbet,
Gérôme and Manet. And it is also to
experience Homer’s influence on
Americans Howard Pyle, the Wyeths, John Marin, Arthur Dove and
Norman Rockwell. Homer spanned
Europe and America; Cullercoats
appears to be the bridge.
More often than not, his early
pictures’ figures feel unnatural and
overwrought. Homer treats his people, on whom he lavishes too many
persnickety details, differently from
their environments, losing a sense
of the whole. In “Croquet Players”
(1865), the figures appear to glide
above the lawn. In such works as
“Sparrow Hall” (c. 1881-82) and
“The Mussel Gatherers” (1881-82),
the spaces are light-filled and easy
to navigate until you come to the
figures, which feel stilted, staged
and pasted onto their settings, like
puppets in a toy theater.
This problem persists in many
of his early seascapes—his human
subjects illustrated and posed, not
interpreted and felt. Yet this approach changes considerably after
Cullercoats.
In “Moonlight, Wood Island
Light” (1894), a canvas Homer
probably painted on the beach,
forms, paint, surf and light are integrated, active and immediate. And
in “Driftwood” (1909)—perhaps his
best and final major canvas, in
which a fisherman is blocked from
accessing the sea by a giant piece
of driftwood—foreground, middleground and background all advance
like a wave breaking against us. We
feel immersed in the coastal spray
and wind. In these late works,
Homer buries the albatross of illustrator at sea.
Coming Away: Winslow Homer
and England
Worcester Art Museum, through Feb.
4, 2018
Mr. Esplund writes about art for
the Journal.
PEET’S COFFEE
TEA
Continued from page A15
ter tea bags, teas that make wellness claims, and more inventive
flavors could convince people to
spend more.
Mighty Leaf Tea Co. sells sheer
hand-stitched pouches with ingredients such as camomile flowers,
rose-hips peels and lemon myrtle
from Croatia and Turkey. A pack of
15 tea bags sells for $9.95. The
Peet’s Coffee & Tea-owned brand
prints the suggested brew time on
the tag.
TeaPigs, an 11-year-old British
brand available in over 35 countries, sells tea bags in flavors like
chocolate flake, and licorice and
peppermint.
There’s a tea for a range of
moods and woes: when you’re
bloated, wired or hung over.
Unilever PLC, the world’s largest tea maker, this year launched a
range of green and herbal teas under its Lipton brand blended with
essential oils.
Wal-Mart sells a 15-bag pack
of “Stress Less” and “Soothe
Your Tummy” for $4.38, or
30 cents a bag, significantly
higher than the 4 cents it
asks for a bag of regular
black Lipton.
Unilever is also trying to move people
away from the tea
bag. In 2015 it
launched a $210 capsule tea machine in Europe, which amends brewing time and temperature
depending on the blend of tea. A
box of 10 Darjeeling tea capsules
sells for about $8.
Cafes are now making more coffee-like tea drinks that people
can’t easily whip up at home.
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blend, which includes hints of
pineapple and cornflowers.
At Peet’s, best-selling items include a dirty chai latte for $5 and
a matcha green tea latte—made
from finely ground green tea
leaves—for $4.20.
Such tea drinks are “big
revenue drivers” that
deliver comparable
margins to coffee, according to the company.
Starbucks last summer
began selling iced strawberry green tea, pineapple
black tea and peach white tea
in the U.S. for between $2.75 and
$2.95—supported by a $9 million
TV ad campaign touting their
“feel-good” benefits. The drinks
are flavored with fruit and botanical blends.
U.K.-based Taylors of Harrogate,
which owns the Yorkshire tea brand,
recently launched a $9.2 million TV
campaign aiming to put a quirky
slant on English propriety. One spot
features English indie rock band
Kaiser Chiefs belting out a song at
the Yorkshire Tea office while a receptionist puts a caller on hold.
The tagline: “Where everything’s done proper.”
Tea companies are also spending more on training staff. They
say that seemingly minor things—
when milk is added, whether fresh
water is used and how hot it is—
all contribute to making a good
cup.
“They need to develop the snob
appeal and connoisseurship and
make it like wine,” says Mark Pendergrast, author of “Uncommon
Grounds: The History of Coffee
and How It Transformed Our
World.”
“Tea has a hugely long, fascinating history, and that’s something
they need to highlight.”
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THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | A17
GETTY IMAGES (2)
LIFE & ARTS
ON “IF ALL I WAS WAS BLACK”
(Anti), Mavis Staples sings of social injustice and racial discord,
her voice warm and loving, her
phrasing at times clipped with
suppressed anger. Exploring anew
subject matter she’s addressed
throughout a career that began almost 70 years ago with the Staple
Singers, here Ms. Staples testifies
that she still believes that love
and dialogue are the way forward.
She refuses to point to flaws in
her opponents without recognizing the flaws in herself. But she
also acknowledges a change in
American culture: Having long ago
visited with the mother of Emmett
Till—the 14-year-old who in 1955
was brutalized and lynched in
Mississippi following an accusation that he had flirted with a
white woman—and sung often in
support of Martin Luther King Jr.,
she sees that progress toward a
more perfect union is now
thwarted and that vile, anti-American forces that seemed vanquished have returned.
“If All I Was Was Black,” which
arrives on Friday, is her third collaboration with Wilco’s Jeff
Tweedy, who wrote and produced
the album. Musically, it is of a
piece with her run of five earlier
21st-century studio recordings that
constitute a very satisfying late
period. It links to the Staple Singers’ easygoing blend of pop, gospel
and light funk while tossing in a
pair of folk blues; and most tracks
would slide in without quarrel on
a mixtape with the Staples Singers’ “If You’re Ready (Come Go
With Me),” “I’ll Take You There,”
MUSIC REVIEW | By Jim Fusilli
Troubled Times Call For
Love and Dialogue
Mavis Staples sings of social injustice and racial discord on her new album
“Respect Yourself”
one / To look at it
and other hits.
from your point of
Much as it is
view.” She conhere, the quest for
cedes her wrath in
racial equality was
“We Go High.” “I
a lyrical theme for
have a mind to
some of her other
bury them whole,”
contemporary reshe sings.
cordings, in particBut, as she so
ular the gritty
often has, Ms. Sta“We’ll Never Turn
ples rises above
Back,” the 2007 alhate and the hatebum in which she
ful. Certain that
and Ry Cooder reGod and justice
visited the civilare on her side,
rights movement.
she offers soluHer early 2016
tions that require
disc, “Livin’ on a
patience, commitMavis Staples, top and above, with Jeff Tweedy, who wrote and
High Note,” proment and a willproduced the singer’s new disc, ‘If All I Was Was Black’
duced by M. Ward,
ingness to accept
concluded with
a disproportionate
“MLK Song,” folk blues in which
Staples and Mr. Tweedy cite curamount of responsibility for strife.
Ms. Staples sang excerpts from a
rent events in the new songs.
“People are dyin’ / Bullets are
1968 King sermon. For the most
“Poor kid, they caught him withflyin’ / No time for tears / We’ve
part, though, Ms. Staples offered
out his license / That ain’t why
got work to do” is how she puts it
songs of faith, both traditional and
they shot him,” she sings in “Little
in “No Time for Crying.” “Little bit
recently composed, many informed Bit.” In “Build a Bridge,” she
from you and a little bit from me,”
with an optimism that now seems
states: “When I say my life matters she sings in “Little Bit,” adding,
misplaced.
/ You can say yours does too / But
“Simple as it gets / We set each
Without naming names, Ms.
I bet you never had to remind anyother free.” If those sentiments
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Sacramento
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Today
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51 37 c
43 33 pc
50 43 r
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62 55 r
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Jerusalem
Johannesburg
London
Madrid
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Moscow
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Rome
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Seoul
Shanghai
Singapore
Sydney
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HERE’S TO YOU! | By Zhouqin Burnikel
Across
1 Carrying current
5 Symbol on a
Scrabble board’s
center space
28 Beethoven’s
Symphony No. 3
32 Sizable serpent
33 Small change
4 Taxpayer who’s
gone paperless
34 Cocktail with a
black currant
flavor
5 NBC weekend
fixture
8 Postgame
summary
52
61
30 Brewer with a
“Banquet Beer”
7 Maria’s pal in
“West Side
Story”
45
49
56
3 Luther Stickell’s
portrayer in
the “Mission:
Impossible”
movies
6 ___ Maria
40
42
46
29
35
39
41
13
22
25
27
32
12
19
21
23
11
16
18
20
53
9
15
17
53 Antibullying ad,
in brief
56 Some pop
groups
9 More suggestive
51 Like bubble baths
13 Song for the
masses
18
60 Here’s the deal
37 Collection for
the poor
64 Complete
reversal
25
15 Golfer’s front or
back
39 Org. with many
secrets
65 Home inspection
issue
26
16 Impressive
display
40 Shoelace
problem
66 Fall guy?
29
17 Here’s the scoop
41 Microwave
sound
21 Ride for hire
22 TV journalist
Curry
45 Mine extraction
46 Criticize strongly
23 Here’s the catch
48 Passes, as a law
27 Screeching bird
50 Here’s the pitch
69 Sort
Down
1 Hot flow
2 “No man ___
island”
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
44 Dealer in souls
12 He played
Pacino’s brother
in “The
Godfather”
14 “Like that’ll ever
happen!”
42 Vessels from
hearts
43 Two-time Best
Director Lee
49 Fed a neighbor’s
feline, say
19
68 Attachment for
draft horses
42 For all to hear
11 Parallelogram
calculation
24
20 It might be
obtuse
35 Finished off
38 Prepare for a
fight
47 Nutrient in
seaweed
57 Starting squad
67 Fracking
target
31 Cost for cards
32 Rich sponge cake
10 Get it wrong
36 “Let’s get
going!”
9 Arrive at
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
26 12 s
23 19 s
Atlanta
61 41 s
61 45 s
Austin
76 61 pc 77 63 c
Baltimore
52 32 pc 54 40 pc
Boise
50 36 pc 52 42 c
Boston
43 34 sh 45 40 pc
Burlington
39 27 c
44 37 c
Charlotte
58 36 s
58 39 pc
Chicago
48 44 c
52 31 r
Cleveland
48 34 pc 48 39 r
Dallas
77 64 pc 74 60 c
Denver
66 28 pc 58 35 pc
Detroit
46 36 pc 45 35 r
Honolulu
86 73 sh 84 72 pc
Houston
79 59 pc 81 63 pc
Indianapolis
48 37 pc 49 31 r
Kansas City
57 48 sh 58 31 pc
Las Vegas
73 52 pc 76 59 s
Little Rock
62 49 pc 66 50 sh
Los Angeles
76 59 pc 74 59 pc
Miami
84 72 pc 82 70 pc
Milwaukee
48 42 c
51 32 r
Minneapolis
48 32 sh 38 24 pc
Nashville
59 40 pc 62 48 sh
New Orleans
71 54 s
74 56 pc
New York City
48 38 pc 49 43 pc
Oklahoma City
67 55 sh 64 45 c
80s
80s
1
50s
A bany
Albany
oux FFalls
Sioux
Mr. Fusilli is the Journal’s rock
and pop music critic.
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
d
Edmonton
seem too pat and idealistic—and
minus Ms. Staples’s delivery, some
read as such—she makes clear that
she’s also a realist who won’t be
told to pipe down. In “Who Told
You That,” she’s advised “My, my
don’t explode / We don’t want to
rock the boat,” but she immediately challenges that soft counsel:
“Who told you that? / They lie and
they show no shame.”
Mr. Tweedy surrounds Ms. Staples with a sympathetic band including his son Spencer and Stephen Hodges on drums; Scott
Ligon on various keyboards; and
guitarist Rick Holmstrom and
bassist Jeff Turmes, who, like Mr.
Hodges, have been members of Ms.
Staples’s live band. A battery of
backup singers gives the music a
gospel lift. As a songwriter, Mr.
Tweedy interprets her longstanding positions. She believes in the
essential goodness of those who
see and savor the shared humanity
and she won’t obsess over those
who don’t. She offers her hand to
those who may view it with increasing and inexplicable suspicion
and disdain. If those who live to
loathe reject it, so be it: “Oh I
won’t be afraid / If that’s how you
want to stay / I’ve got love,” she
sings in the title track.
A subtly provocative commentary on the country’s troubling,
unrestful state, “If All I Was Was
Black” is yet another high mark in
the long and eventful career of Ms.
Staples, who has seen much and
knows what it means.
27
52 Schoolyard
comeback
53 “Besides that...”
54 Enemy of the
Jedi
Did an usher’s job
55 Greenish-blue
Kick out
hue
Try a run
58 “Take ___!” (track
Candy wafer
coach’s directive)
brand
59 Viral video, e.g.
It beats scissors
61 Digital address
Boot bottoms
62 Sort
“Give me a few
more minutes!”
63 Lyrical tribute
Previous Puzzle’s Solution
C
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S O D A
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T A I L
L E
G E L A
A R E S
W I R E
K E Y S
S I M B A
K N E A D
G U A R D S
O L F
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G R OWN
S O N S
C O A T S
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A18 | Tuesday, November 14, 2017
SPORTS
COLLEGE BASKETBALL | By Jason Gay
Duke men’s basketball coach Mike Krzyzewski holds the game ball following his 1,000th win at the school.
Dungy managed to have a lengthy,
thoughtful conversation about the
athlete protests in the NFL without anyone throwing a Papa
John’s pizza.
It felt like a minor miracle.
Look: Duke men’s basketball has
brought me great misery, and I
wanted to hate “Basketball & Beyond with Coach K.” But it’s good.
Krzyzewski used to do the typical sports radio coach’s show, back
when he began in Durham. He did
not love it. “I’d go to a studio
someplace, and Sam from Apex
would call, and Jim from Raleigh,”
Krzyzewski tells me in his office
after a show taping. “I’m saying,
‘Yeah, I should be home talking to
my family, not these guys.’”
But Krzyzewski enjoys “Basketball & Beyond,” “because it’s not a
call-in, and I get a chance to really
visit with top-notch people. I learn
a lot, even in the preparation of
it.” He says he likes the show so
much, he’d want to expand it when
he steps away from the bench.
Don’t panic, Dukies: K does not
sound in a rush. Krzyzewski may
have an office stuffed with memorabilia—in the hallway is a basketball from Duke’s 2015 title over my
Wisconsin Badgers that I wanted to
steal and punt out a window—but
he’s thoroughly in the present, with
another stacked team expected to
make noise in late March.
THE COUNT
Italian players react after being knocked
out of World Cup contention by Sweden.
DANIEL DAL ZENNARO/EPA/SHUTTERSTOCK
A RUN OF BAD PUCK
SOCCER
ITALY WHIFFS ON WORLD CUP
BY JOSHUA ROBINSON
OVER THE PAST 60 years, nearly
everything about the World Cup has
been tinkered with, from the number of teams to the design of the
trophy. But when the 2018 edition
kicks off in Russia next summer, the
tournament will try something it
hasn’t experienced since 1958: a
World Cup without Italy.
The Azzuri, four-time world
champions, failed to qualify on
Monday after losing a home-andhome playoff against Sweden,
marking a level of sporting disgrace
that younger generations had not
considered possible. Worse than
slow Ferraris or Olympics without
medals, an incompetent national
soccer team is as low as it gets for
this soccer-mad nation.
“We blew something that could
have been significant, even socially,” goalkeeper Gianluigi Buffon
said while weeping through his
post-game interview. “The blame
is shared among all of us.”
Italy will be the only previous
Like a lot of his colleagues,
Krzyzewski has adapted to college
basketball’s fleeting “one-and-done”
landscape, in which top players stay
only a season before departing for
the NBA. He’s been good at it—this
season, Duke has star frosh Marvin
Bagley III, who should be a top NBA
pick this spring, and next season,
they will bring the touted Canadian
prospect R.J. Barrett to campus.
This isn’t to say Coach K likes
“one-and-done”—he doesn’t. And
amid the FBI bribery case involving college teams, sketchy agents
and intermediaries — a development that led to the NCAA’s Commission on College Basketball—
Krzyzewski wants to put the entire
system up for reconsideration.
“The whole journey has to
change,” Krzyzewski says.
I thought Coach K might be oldfashioned about change. But he
sounds open to everything: not just
eliminating one-and-done, but
strategizing different compensation
ideas for players, and growing the
NBA’s role, perhaps through the G
League or an academy-style track
similar to what it does overseas.
The only thing he’s dead opposed
to is a hard rule on how much time
a player spends in college.
“Once we get a player, he becomes a part of Duke,” he says.
“We have a responsibility to educate him, to coach him and all that,
but he has the right to determine
whether he comes here or not, and
then how long he stays here.”
On the issue of compensation, I
tell him that any time I write about
paying college athletes, I hear from
folks who feel a scholarship is a
more-than-fair deal.
“Well,” Krzyzewski says, “not to
say that one is more important
than the other, but there are different levels of college athletes.”
He continues: “And college
teams. The sport of football, the
sport of men’s basketball, the revenue producing element, especially
at the Power Five conference
level—it’s apples and oranges. It
isn’t all apples. Do we have a system that can figure that out?”
It’s not simple. There are legit
concerns about what paying athletes would mean for athletes in
non-revenue sports—or if it’s legally possible with Title IX rules.
Could revenue sports like football
and men’s basketball be legally reclassified as something different?
“That’s a possibility,” Krzyzewski says. “I’m a proponent for
change. It’s not working. I don’t
have the solution. I would hope
that this [commission] comes up
with some courses of action.”
The focus should be the people
on the court, he says.
“The game is the kid,” Coach K
says. “The game is the player.”
And with that, the winningest
men’s college basketball coach has
to wrap. Basketball games were
coming, and a season’s worth of
radio shows, too. It’s time to get
back to work…and listening.
winner of the World Cup not to be
in Russia.
It now joins the ignominious
club of major soccer nations to fall
apart in qualifying this year,
alongside Chile and the Netherlands. And then there is the U.S.,
which failed to emerge from one of
the easier qualifying zones when it
choked last month against lowly
Trinidad and Tobago.
Italy’s defeat also marked a devastating end to one of the great
careers in the international game.
Buffon, Italy’s captain, keeper, and
national anthem singer-in-chief
was always going to retire at the
end of this World Cup campaign.
He just didn’t expect the conclusion to come without a flight to
Russia. But at 39, after 175 international matches in 20 years, he
called it quits. “I don’t feel sorry
for myself,” he said. “I feel sorry
for the entire project.”
That said, the Italian project
hasn’t exactly been a major factor
in international soccer since the
Azzurri last lifted the World Cup
in 2006. At both the 2010 and
2014 tournaments, they were
knocked out in the group stage.
This time around, Italy put itself
in this predicament because it finished behind Spain in its original
qualifying group. That meant it had
to take the playoff route, where it
started as a heavy favorite against
the Swedes, who hadn’t been to the
World Cup since 2006. But the
damage was done in the first leg in
Stockholm when Sweden snuck in
one severely deflected goal.
On Monday night in Milan, Sweden knew it simply had to defend
its advantage. Bending but never
breaking, it allowed Italy to have
75% possession and 23 attempts
on goal, though only six of Italy’s
shots hit the target. Sweden’s
physical approach and compact defending kept the Azzurri off balance as time ran out. And as Italy
panicked, its game went to pieces.
“Anyone who has played knows
how difficult it is to play in games
like this one,” Buffon said. “We
didn’t manage to express ourselves. We lacked the clear heads
to score.”
Nearly six weeks into the NHL
season, the Arizona Coyotes are remarkably still looking for their first
win in regulation.
At just 2-14-3, Arizona is on
pace for just 30 points over a full
82-game schedule, which would
represent the sport’s worst record
in a generation. It took 12 games
for the team to get a win of any
sort, on a goal with just 15 seconds
left in overtime against the Philadelphia Flyers. Their second victory
came five nights later in a shootout
over the Carolina Hurricanes.
Things aren’t going to get easier for the Coyotes, as 10 of their
next 14 contests are on the road.
And the four home games their
fans will “enjoy” during that
stretch are against the top
three teams in the Pacific
division (Los Angeles Kings,
Las Vegas Golden Knights
and San Jose Sharks) and the
Metropolitan division-leading
New Jersey Devils.
Inexperience
has played a role
in the Coyotes’
dismal start.
The average
age on their
roster is
just 26.0,
making them the second-youngest
team in the NHL behind the Columbus Blue Jackets.
The lone bright spot for the
Coyotes has been the play of 19year old forward, Clayton Keller. A
2016 first-round pick out of Boston
University, Keller has lit the lamp 11
times in 19 games. No one else on
Arizona has as many as five goals.
That lack of offensive firepower
has been extremely difficult to
overcome for a team whose goalies
are dead last in the league with a
.881 save percentage, which is the
lowest mark in the league since
1999-2000.
In a sport where over half the
teams make the postseason, it
appears Arizona will miss
the playoffs for the sixth
consecutive season—and
12th time in 15 years. In
38 seasons split between
Winnipeg and Phoenix,
the franchise has only one division title.
—Eric Eisenberg
Arizona
Coyotes
goalie
Antti
Raanta.
Frozen on Ice
Lowest percentage of possible points by non-expansion teams:
TEAM
SEASON
POINTS
PTS. %
San Jose Sharks
New York Rangers
Arizona Coyotes*
Chicago Blackhawks
Quebec Nordiques
Washington Capitals
Winnipeg Jets**
1992-93
1943-44
2017-18
1927-28
1990-91
1976-77
1981-82
24
17
30
17
31
32
32
.143
.170
.184
.193
.194
.200
.200
* 82-game pace **Arizona Coyotes franchise
Source: Hockey Reference; WSJ
NORM HALL/NHLI/GETTY IMAGES
Durham, N.C.
At this point, why
should Coach K listen
to anybody?
Still, here we are, on
a recent morning, amid
a tangle of cords and headsets, in a
room not far from that rowdy
mousetrap, Cameron Indoor Stadium. Mike Krzyzewski—the winningest coach in men’s college basketball history, the holder of five
national titles—is sitting at a conference table, dressed in a spiffy Blue
Devils pullover, quietly…listening.
To A.J. Hinch, manager of the
newly-crowned World Series champion Houston Astros, who talks
about being the “calmest heartbeat” in the clubhouse.
To Alex Rodriguez, currently
transforming from baseball pariah
to beloved TV personality, who talks
about trying to convert Jennifer Lopez to a Miami Hurricanes fan.
“You are so damn interesting to
talk to,” Coach K coos at one point
to A-Rod.
This is “Basketball & Beyond
with Coach K,” Krzyzewski’s national radio show, now in its 13th
season on SiriusXM’s ESPNU station. The Duke coach, now 70,
maintains his high-profile day
job—the Blue Devils began the
2017-18 season ranked No. 1 in the
country, and face No. 2 Michigan
State Tuesday in Chicago—but he
somehow finds time to host a
weekly interview show where the
guests have ranged from LeBron
James to Richard Petty to former
Chairman of the Joint Chiefs of
Staff General Martin Dempsey.
Coach K has had Bill Belichick
on twice. Twice! And Football’s Favorite Grumpy Lobster Boat Captain was downright gabby.
“I can’t believe how much he
talked,” Krzyzewski says.
“Basketball and Beyond” is not
typical sports radio schlock. Coach
K does not do the hot take—as a
host, he’s low-fi curious, like NPR’s
Terry Gross, or his friend and Duke
grad, Charlie Rose. He pulls questions from pages of notes. There
are no gotcha moments, though he
does bring up A-Rod’s steroids
past, allowing him to address it
and tactfully pivot away.
A couple of weeks back, Krzyzewski and former NFL coach Tony
GERRY BROOME/ASSOCIATED PRESS
Coach K Is Still Listening
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | A19
OPINION
The ABA Jumps the Shark
Looks as if the
American Bar
Association
picked
the
wrong judicial
nominee to
play politics
MAIN
with. If ReSTREET
publicans on
By William
the Senate JuMcGurn
diciary Committee
are
smart, they will use the ABA’s
appearance at a hearing
Wednesday to call the group
out.
The object of the ABA’s attention is Leonard Steven
Grasz, a former Nebraska
chief deputy attorney general
who’s been nominated for the
a seat on the Eighth U.S. Circuit Court of Appeals. The
ABA has slapped Mr. Grasz
with a “not qualified” rating,
saying he’s too biased and too
rude to be a judge. Given that
much of this rating is based
on accusations that are not
detailed and from accusers
who remain anonymous, it reveals more about the organization that issued it than it
does about Mr. Grasz.
“The ABA is running a
smear campaign based on the
idea that Steve is a kale-hating, puppy-kicking monster,”
says a fellow Nebraskan, Republican Sen. Ben Sasse. “But
no one in Nebraska on either
side of the aisle recognizes
that man.”
The ABA says its ratings
are based on neutral and professional criteria, much the
way a medical board might
evaluate a doctor. Since President Eisenhower “first invited
the ABA into the process,”
the group says, it’s been
standard practice for presidents to submit their judicial
candidates to the ABA for
vetting before announcing a
nomination.
Well, yes and no. In just
one indication of how politicized the ABA ratings have
become, Democrats and Republicans long ago diverged
on the ABA’s role in the nominations process. In 2001,
George W. Bush halted the
practice of giving the ABA
first crack at vetting potential
nominees; in 2009 Barack
Obama revived it; and this
year President Trump halted
it again.
Yet even without an official role, the ABA ratings still
exert undue influence on
nominations. For the real signal sent by a “not qualified”
rating is: This guy is a Neanderthal. That in turn allows
the press to portray a nominee as out of the mainstream,
and it can siphon off confirmation votes from Republican
senators nervous about the
rating.
That’s plainly what the ABA
hopes for Mr. Grasz. The ABA’s
statement makes clear his “not
qualified” rating is based on
two broad worries: his “passionately held social agenda”
and complaints that he’s been
“gratuitously rude.”
By “passionately held social agenda,” the ABA means
abortion; in his prior life Mr.
Grasz defended—as a state
deputy attorney general is
obliged to do—a Nebraska
ban on partial-birth abortion.
What it means by “rude” no
one knows, because the ABA
has thrown this out there
while providing almost no
specifics. For good measure,
the ABA has twisted a twodecade-old law review article
to suggest Mr. Grasz rejects a
point he explicitly states, to
wit, that judges are bound by
clear legal precedent—even
when “it may seem unwise or
even morally repugnant.”
Why did the group
ask where a judicial
nominee’s children
went to school?
So Wednesday’s hearings
offer Republicans an excellent
opening to press ABA officials
on how they came to their
“not qualified” rating. Here’s
a few suggestions:
• Why did the ABA ask
where Mr. Grasz’s children
went to school? Does the ABA
believe their Lutheran education affects his fitness as a
judge?
• Is it ever appropriate for
an ABA interviewer to refer to
“you people,” as Mr. Grasz’s
did? When Mr. Grasz asked
for clarification, the interviewer said he meant “Republicans and conservatives.” Has
the ABA ever referred to “you
people” when interviewing a
Democratic nominee?
• The ABA has taken positions on many of the most
contentious issues before
the courts these days, from
abortion to guns to same-sex
marriage. How can a Republican judicial nominee have
confidence these ABA positions will not adversely affect the ABA’s rating?
The questions are particularly compelling given that
the Mr. Grasz who testified at
his confirmation hearing earlier this month bears no resemblance to the knuckledragger the ABA is making
him out to be. So it’s crucial
Republicans keep the focus on
the ABA and not let the hearing become yet another stage
for anonymous accusations
against Mr. Grasz—especially
because he won’t be there to
defend himself.
The best revenge, of
course, is getting this man
confirmed notwithstanding
his ABA rating. But the day
after the attacks on Mr.
Grasz at his hearing, Mr.
Sasse delivered an impassioned speech on the Senate
floor, raising an even larger
question: Since when did the
Senate accept the idea that
its members should outsource to a third party their
constitutional responsibility
to evaluate the fitness of the
president’s nominees to the
federal bench?
“There’s nothing wrong
with a liberal organization
such as the ABA using its
First Amendment rights to
push its political agenda,”
says Mr. Sasse. “What’s
wrong is to allow it to masquerade as fair and impartial
arbiter—and give it a special
role in the process.”
Write to mcgurn@wsj.com.
Donald Trump’s High-Wire Foreign Policy
By Walter Russell Mead
P
resident Trump inherited a world in crisis,
with the Pax Americana
challenged in Asia, the Middle
East, Europe and the Caribbean. Today the White House
has clear priorities—but questions about temperament and
competence persist.
Think back 10 months to
Inauguration Day. North Korea
was regularly testing and improving its missiles and nuclear weapons, well on its way
to threatening the American
mainland. China was intensifying its multifaceted challenge to the Asian status quo.
Iran’s expansionism threatened to plunge the Middle
East into chaos, and the regime had outmaneuvered an
Obama administration that
was desperate for a nuclear
deal. Russia’s annexation of
Crimea and support for breakaway forces in eastern Ukraine
presented legal and geopolitical challenges to the post-Cold
War order. Venezuela’s progressive degradation threatened to destabilize Latin
America, a region of direct interest to the U.S.
Remember, too, President
Trump’s skepticism of global
engagement. He came into office convinced that American
interests were being undermined by the multilateral
trading system, as established by the George H.W.
Bush and Bill Clinton administrations. He disdained the
process enshrined in the 2016
Paris climate accord.
If all this weren’t enough,
the incoming team knew that
the American public was increasingly skeptical of large
overseas
commitments—
whether to diplomacy, foreign
aid or war. And the journalistic and foreign-policy establishments viscerally opposed
Mr. Trump on personal and
political grounds.
It’s more conventional
than expected, at a
time when the world
is more perilous.
Talleyrand, Metternich, Bismarck and Kissinger, working
together, would have had a
difficult time managing a
portfolio this large, urgent
and unwieldy. The Trump administration has struggled visibly to develop a coherent approach. Yet as the president’s
first year nears its conclusion,
some order has begun to
emerge, and at least the outlines of a Trump global policy
now seem clear.
The first task was to set
priorities, and it is obvious
that the White House is putting Asia and the Middle East
above other regions and issues. The crises in Ukraine
and Venezuela are on the
back burner. So are climate
and trade policy, though the
president’s tweets sometimes
disguise this reality.
When addressing its priorities, the Trump administration has chosen an activist
approach, tightening relations with traditional allies
to restore regional orders under threat. This means checking Iran by working closely
with the untested new Saudi
leadership, as well as Egypt,
the United Arab Emirates and
Israel.
This anti-Iran phase is beginning in earnest now that
the Trump administration’s
original goal of destroying Islamic State’s so-called caliphate has been largely achieved.
The White House also hopes
the new constellation of forces
will allow progress on another
goal: containing and maybe
even resolving the Israeli-Palestinian dispute.
In Asia the administration,
working closely with Japan, is
trying to assemble and
strengthen a coalition to
counterbalance China—while
simultaneously seeking Chinese cooperation in tightening
the screws on North Korea.
The White House hopes that
offering Beijing a smooth
trade and political relationship will induce it to provide
real help with the North Korea
problem, even as the U.S.
works to persuade the North
Koreans that the risks of conflict are real.
Mr. Trump’s foreign policy
has so far turned out to be
more conventional than his
rhetoric and style would suggest. Working with America’s
traditional allies in Asia and
the Middle East against those
regions’ revisionist powers
hardly amounts to a strategic
revolution.
But if Mr. Trump’s current
goals are conventional, the
state of the world is not. He
may well fail. The challenges
are large, the learning curve is
steep, and the terrain is unforgiving. Allies and adversaries
are watching the Republican
Party’s disarray on issues like
health care, assessing the
prospects of a Democratic
wave in 2018, and paying close
attention to the progress of
the Mueller investigation. Mr.
Trump’s foreign policy, like his
presidency overall, is a gamble
whose outcome the president
cannot fully control.
For now Mr. Trump is performing a high-wire act, juggling his way across the IndoPak region even as his
administration pursues ambitious goals in the Middle East.
Some of the world’s most
powerful countries hope that
he fails, and they will do what
they can to trip him up. Americans, regardless of party or
their personal sentiments
about Mr. Trump, should wish
him success overseas. The
consequences of failure could
be extreme.
Mr. Mead is a fellow at the
Hudson Institute and a professor of foreign affairs at Bard
College.
A Hedge Fund That Has a University
By Thomas Gilbert
And Christopher
Hrdlicka
W
hatever you may hear,
the Republican tax-reform proposal isn’t an
assault on higher education.
The House and Senate plans include a new 1.4% excise tax on
the net investment income of
university endowments, but the
levy applies only to private colleges with at least 500 students
and endowments of more than
$250,000 a student. Schools
like Harvard, Yale, Stanford and
Princeton—which together hold
over $100 billion—are predicting doom. Yet this long-overdue tax will benefit higher education in the end.
Over the past 30 years universities have chased higher
returns on their endowments,
leading them to take greater
risks. Our research shows
that more than 75% of the assets in university endowments are now in risky investments: securities, hedge
funds and private equity.
Think of Harvard as a tax-free
hedge fund that happens to
have a university.
The proposed levy on investment income—dividends,
interest and capital gains—is
fundamentally a tax on this
risk-taking, not on the endowments themselves. By taxing
risk-driven income, the GOP
plan doesn’t target higher education. It goes after hedge
funds masquerading as university endowments.
Taxing endowments’
investment income
would help higher ed.
When an endowment is invested in safe assets such as
bonds, it serves as a rainy-day
fund to buffer the risks a university takes in its normal operations: admitting students
on scholarship, launching new
research laboratories and
generally expanding its educational and research missions.
Such a safe endowment generates almost no investment
income, meaning there would
be no tax liability under the
GOP proposal.
Instead the tax would fall
on large, risky and illiquid
funds. Endowments that make
such investment decisions cannot effectively protect their
schools. During the financial
crisis, Harvard’s endowment
lost nearly 30% of its value. After failing to sell its privateequity portfolio, the university
had to institute drastic hiring
and budget freezes.
A large and risky endowment
also reveals a university’s poor
assessment of its internal investment opportunities, such as
scholarships and research. If
Harvard and Stanford have educational and research projects
that could benefit from additional funds, why put their
money at risk in the stock market? Perhaps the answer is that
the opportunity to run a tax-free
hedge fund is too attractive. In
that case, why should taxpayers
subsidize their activities?
In colleges’ defense, states
have placed perverse restrictions on their ability to use
endowments as rainy-day funds.
The Uniform Prudent Management of Institutional Funds Act
is a law in 49 states that limits
the maximum endowment payout rate between 5% and 7% a
year. Although well-intentioned,
that and earlier restrictions
prevent universities from tapping endowments to fill the
kind of budget holes they experienced in 2008.
To have the best chance of
improving incentives for endowments, the proposed investment tax should be accompanied by a repeal of these
payout caps. But it’s a mistake
to think that taxing risky investments by university endowments is an attack on academia.
Discouraging
superwealthy
schools from pumping cash into
stocks, hedge funds and private
equity should lead to increased
spending on education and research. Isn’t that the purpose of
higher education?
Messrs. Gilbert and Hrdlicka
are assistant professors of finance at the University of
Washington.
BOOKSHELF | By Caitlin Fitz
Freedom
On the March
The Expanding Blaze
By Jonathan Israel
(Princeton, 755 pages, $39.95)
W
e in the United States have long liked to see our
nation as an inspiration for liberty-lovers worldwide.
Thomas Paine called the would-be republic “an
asylum for mankind.” Ralph Waldo Emerson memorialized
“the shot heard round the world.” It was up to us, Abraham
Lincoln vowed, to prove “that government of the people, by
the people, for the people shall not perish from the earth.”
In “The Expanding Blaze,” Jonathan Israel, professor emeritus at the Institute for Advanced Study in Princeton, urges
us to take these lofty visions seriously. From 1775 through
1848, he argues, the American Revolution inspired freedomfighters around the world, from Canada and Colombia to Ireland and Italy. Consider the National Assembly of revolutionary France, which convened
under the stony gaze of three
busts: George Washington,
Benjamin Franklin and JeanJacques Rousseau.
Yet the American Revolution
had a contested legacy, Mr.
Israel argues, for it encompassed two “irreconcilable” ideologies. On one side were radical
“democratic republicans” like
Thomas Jefferson and Paine, who
championed sweeping political,
social and secularizing change. On
the other side were “aristocratic
republicans” like John Adams, who
advocated more incremental reform,
sought “anti-democratic” restrictions on voting
and admired Britain’s “mixed government.” Mr. Israel argues
that this divide marked “all” of the revolutions that ensued in
Latin America and Europe over the next several decades.
The stakes were high. Would revolutionaries champion a
new world era of “universal rights”? Or would they settle for
what Jefferson called the “half-way house” of England’s
constitutional monarchism? To readers of Mr. Israel’s
previous books, the argument will sound familiar. A scholar
of European intellectual history, Mr. Israel has long maintained that the Enlightenment of the 17th and 18th centuries
encompassed similarly radical and moderate wings. Scholars
have praised Mr. Israel’s interpretation for its breathtaking
scope, but they have criticized it for weak evidence, proradical bias and overstated dichotomies that miss the
messiness of real life and the exigencies of politics. The same
strengths and weaknesses mark “The Expanding Blaze.”
A relative newcomer to U.S. history, Mr. Israel sometimes
brings a refreshing outsider’s perspective, as when he shows
how the American Revolution galvanized Irish resistance to
British rule, or in his account of the exodus of radicals from
Germany to the United States after Europe’s failed 1848
revolutions. Though the author concentrates on tiny circles of
intellectuals in each country, he shows how the radicals
among them strategically invoked the American example as
evidence that change was possible, and he powerfully
captures their sense of global urgency.
In the wake of American independence, ensuing
revolutions worldwide likewise saw a divide
between ‘democratic’ and ‘aristocratic’ ideals.
The other part of Mr. Israel’s argument—that a
comprehensive divide between “democratic” radicals and
“aristocratic” moderates framed debates from the U.S. to Latin
America to Europe—is less persuasive. The author simply
throws up the revolutionary barricades and pushes everyone
to one side or the other, even when they resist such easy categorization. Take Jefferson, for instance, whom Mr. Israel calls
an “iconic” radical, the “most consistent” and “unambiguous”
among the Founders. Mr. Israel correctly notes that Jefferson’s antislavery urgency was waning by the early 1800s, but
he glosses over the ways in which slavery had long shaped
Jefferson’s politics. Like many of his global contemporaries,
Jefferson was radical and retrograde, all in one.
Mr. Israel’s outsider view of U.S. history sometimes leads
him astray. He calls the antebellum painter and inventor
Samuel Morse a “stalwart champion of democratizing revolutionary values,” perhaps unaware that Morse helped lead the
anti-Catholic nativist movement—which Mr. Israel elsewhere
describes as undemocratic and “conservative.” (Here too, the
author’s dichotomies seem forced.) Other statements are simply ill-considered: Slavery, Mr. Israel asserts, “was universally
recognized as the prime . . . defect” of the United States. But
what about the plight of native people, who might as easily
have pointed to territorial aggression? Jefferson, Mr. Israel
remarks, supported enfranchising “all” free people. But what
about free women? Like most of his contemporaries, Jefferson never intended to see women casting ballots; the putative
radical hoped women were “too wise to wrinkle their foreheads with politics.” Such repeated missteps by Mr. Israel are
distracting at best. At worst, they undermine the reader’s
trust in the author’s accuracy and understanding.
Ironically, although he sympathizes with radicals who
fought for “universal human rights,” Mr. Israel has a limited
idea about whose ideas matter: Black intellectuals and
women are nearly absent from this book. Mr. Israel suggests
that black Haitians struggled to understand the big ideas at
stake, for example, even though recent historians have argued
that Haitian revolutionaries urged global radicals toward a
broader understanding of human freedom. Similarly, he
asserts that in the American Revolution most black people’s
“general understanding of the slavery issue” remained
“stunted by lack of education” and “dogged adherence to . . .
piety.” But historians have shown the reverse: African Americans repeatedly and judiciously convinced sympathetic whites
to act, and their religiosity strengthened their egalitarianism.
Having discounted African American voices, Mr. Israel
devotes little attention to global 19th-century abolitionists,
arguably the leading human-rights radicals of their time.
The problem with “The Expanding Blaze” is not that Mr.
Israel has written about a small group of intellectuals. Men
like Jefferson, Locke and Montesquieu were enormously
influential, and they merit disproportionate attention. But Mr.
Israel too often views such men in isolation, without
exploring how their ideas developed in conversation with the
claims of other social and political groups. Ideas don’t bleed,
and so Mr. Israel’s account is often bloodless, an unrevolutionary treatment of a revolutionary age.
Ms. Fitz, a historian at Northwestern University, is the
author of “Our Sister Republics: The United States in an
Age of American Revolutions.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A20 | Tuesday, November 14, 2017
OPINION
LETTERS TO THE EDITOR
The Great Progressive Tax Escape
Let the Military Focus on Essential Missions
emocrats contend that marginal tax month by promising to soak the rich even
rates don’t matter to investment and more, and his legislature will oblige.
growth, and even some conservative
The prospect of future tax hikes appears to
intellectuals are conceding the
have propelled an exodus of
IRS data show an
point. But the evidence from
high earners from Illinois,
wealth fleeing high-tax states
which has a relatively low and
accelerating flight
shows how sensitive the affluflat 4.99% income tax. Demofrom high-tax states.
ent are to rate increases.
crats raised the rate from 3%
The liberal tax model is to
in 2010, but the tax hike
fleece the rich to finance
lapsed in 2015 after Bruce
spending on entitlements and government pro- Rauner became Governor. House Speaker Migrams that invariably grow faster than the chael Madigan finally this summer secured GOP
economy and revenues. IRS data on tax migra- legislative support to override the Governor’s
tion show this model is now breaking down in veto and reinstate the higher rate.
progressive states as the affluent run for cover
But the tax increase won’t raise enough money
and the middle class is left paying the bills.
to finance the state’s $250 billion unfunded penBetween 2012 and 2015 (the most recent sion liability, and the long-time goal of unions has
data), a net $8.5 billion in adjusted gross in- been to enact a graduated income tax. The afflucome left New Jersey while $6.2 billion poured ent know they’ll get soaked eventually and are
out of Connecticut—4% of the latter state’s total seeking shelter. Top earners made up 47% of Illiincome. Illinois lost $13.6 billion. During that nois’s income flight in 2015 compared to 33% four
period, Florida with no income tax gained $39.3 years earlier. Income taxes from the 306 Cook
billion in AGI. (See the nearby table.)
County denizens who decamped to Palm Beach
Not surprisingly, income flows down the tax in 2015 with $258 million of income could have
gradient. In 2015 New York (where the com- paid 200 teacher salaries. Alas.
bined state and local top rate is 12.7%) lost a net
This millionaires’ diaspora has harmed in$850 million in AGI to New Jersey (8.97%) and come and economic growth. Real GDP between
Connecticut (6.99%). At the same time, the Gar- 2011 and 2016 grew annually at a paltry 0.2%
den State gave up $335 million to Pennsylvania in Connecticut, 1% in Illinois and 1.2% in New
(3.07%), and $60 million left Connecticut for the Jersey, according to the Bureau of Economic
state formerly known
Analysis. These states
as Taxachusetts (5.1%).
were the slowest
Taxpayers from New State Taxpayer Flight
growing in their reYork, New Jersey and Gross migration (in billions of dollars) into and out of
spective geographic
Connecticut escaped to select states in adjusted gross income, as reported on
regions, though other
Florida with $3.2 bil- individual income tax returns
high tax states in the
lion in income. Florida
Northeast didn’t fare
New Jersey Connecticut Illinois
Florida
Gov. Rick Scott ought to
much better.
-$1.7
-$1.8
-$3.3
$9.0
pay these states a com- 2012
As a result, revenues
mission.
have repeatedly fallen
2013
-1.7
-1.8
-3.9
8.7
The affluent account
short of projections in
-2.5
-1.3
-3.0
10.1
for a disproportionate 2014
New Jersey, Illinois and
-2.6
-1.3
-3.4
11.5
share of the income mi- 2015
Connecticut while budgration. For instance,
get deficits have balSource: IRS
THE WALL STREET JOURNAL
individuals reporting
looned.
Democratic
more than $200,000 in AGI in 2015 made up lawmakers have cut public services and funds
57% of the income outflow from Connecticut to local governments, which have responded by
(compared to 48% of total state AGI) and 57% raising property taxes.
of the inflow to Florida.
The Tax Foundation says New Jersey, ConSnowbird flight isn’t new, but migration has necticut, Vermont, New York and Illinois have
accelerated as taxes have increased. Income the highest property taxes in the country. Over
outflow from Connecticut averaged $500 mil- the last two years, the average Chicago homelion between 2003 and 2007. Then in 2009 GOP owner’s property taxes have risen by roughly
Gov. Jodi Rell raised the top tax rate to 6.5% $1,000. Higher property taxes hit middle-class
from 5%, which her Democratic successor Dan- earners especially hard and are another incennel Malloy lifted a few years later to 6.7% and tive to leave a state.
i
i
i
again two years ago to 6.99%. AGI outflow beAs these state laboratories of Democratic
tween 2012 and 2015 averaged $1.6 billion.
In 2004 Democrats raised New Jersey’s top governance show, dunning the rich ultimately
rate on individuals earning more than $500,000 hurts people of all incomes by repressing the
to 8.97% from 6.37%. Between 2012 and 2015, an- growth needed to create jobs, boost wages and
nual income outflow from New Jersey averaged raise government revenues that fund public ser$2.1 billion—twice as much as between 2000 and vices. If the Republican House and Senate taxreform bills follow through with eliminating all
2003 after adjusting for inflation.
Republican Gov. Chris Christie blocked his or part of the state and local tax deduction, proDemocratic legislature’s attempts to reimpose gressive states will have an even harder time
a millionaire’s tax that lapsed in 2009. But Dem- hiding the damage. They should be the next
ocratic Governor-elect won the election this candidates for reform.
O
Oh, No, a Pharma Exec
ne reason men and women in business
are reluctant to go to Washington is the
reception accorded Alex Azar Monday
after President Trump said he will nominate the
former Eli Lilly & Co. executive to lead the Health
and Human Services Department. Mr. Azar was
immediately criticized for, well, knowing too
much about health care.
“It’s a pharma fox to run the HHS henhouse,”
a talking head from Public Citizen told the Washington Post, which headlined the same piece
“Trump’s pick to lower drug prices is a former
pharma executive who raised them.” It seems
that when Mr. Azar was president, Lilly “doubled
the U.S. list price of its top-selling insulin drug.”
T
Well, sure, pharma executives are paid by
shareholders to make money selling drugs. Profits drive drug innovation, so there wouldn’t be
better treatments without profits, which sometimes requires raising prices. Pardon the reality
of market economics.
No doubt Mr. Azar’s record will be parsed by
Senate Democrats, but it’s always possible that
knowing the industry makes Mr. Azar the right
man to regulate it. He can’t do any worse than
the Obama Administration, which cut a political
deal with Big Pharma on drug pricing to win its
support for ObamaCare. Mr. Azar has been a
critic of ObamaCare, which may be the real explanation for the instant opposition.
The Menu Label Cops Win
he Trump Administration is knocking number of pepperonis on a pizza depends on the
down stupid or destructive regulations pie’s size and whether someone also adds onions
at a fast clip, though one of the more ri- and sausage.
diculous Obama-era directives
FDA’s guidance suggests
How many calories are listing calorie ranges for every
survives: Last week the Food
and Drug Administration istopping. For instance: 45-60
in a pizza slice? The
sued draft guidance on a longcalories for bacon, depending
FDA demands to know. on the pizza’s size. The picdelayed rule for calorie boards
at chain restaurants, and Contured examples then feature
gress ought to intervene.
an asterisk that denotes the
FDA released guidance for posting calorie estimate is based on how many calories are
disclosures at restaurants with more than 20 added to a one-topping pizza. This is hardly
locations, and the ostensible point is to help clear for customers.
folks choose healthier foods. The regulations,
The guidance allows some flexibility on kiwhich are an outgrowth of the 2010 Affordable osks and computer tablets, provided stores
Care Act, are set to hit in May 2018 after years don’t have other “menu boards,” with a long deof delays. Most recently, the Trump Administra- lineation on what constitutes a menu board.
tion hit pause on the rules to solicit more feed- This is a waste of time. Dominos already runs
back, but it appears the agency is pressing on an online Cal-O-Meter that allows customers to
with small clarifications.
tally up the damage of the Superbowl feast, and
The reason some restaurants have spent most customers order pizza online and not in
years fighting these rules is not because execu- stores.
tives lay awake at night plotting how to make
Congress for years has sat on a bill that
Americans obese. It’s because the rules are loco. would allow more flexibility on displaying inFor instance: There was confusion over whether formation online, with more legal clarity. The
marketing material counted as a menu board rules are so vague that companies could face a
and thus required calorie disclosures.
crush of lawsuits, which will be abetted by this
FDA’s guidance says a flyer generally isn’t a “nonbinding” FDA guidance.
menu—what a relief—but there are other probFDA has more pressing priorities than microlems. Take pizza companies, which have to dis- managing pizza companies, and perhaps Complay per slice ranges or the number for the en- missioner Scott Gottlieb wants to wrap up this
tire pie. Calories vary based on what you order— fight and move on. But these rules carry real
the barbarians who put pineapple on pizza are costs, and sanity from Congress could move
consuming fewer calories than someone who millions of compliance dollars back into more
chooses pepperoni and extra cheese. But the productive uses.
Regarding your editorial “Bad Marks for a
Good Military” (Nov. 7):
Saying “Congress needs
to allocate enough
money to adequately
train sailors” doesn’t
address the core issue
of failure. Funding
wasn’t the problem; it
was as always a complete lack of leadership
at the highest levels.
This episode falls on
admirals who wanted a
third or fourth star and were eager
to compliment a pitifully naive and
unprepared new entrant to the presidency who saw the military as a petri
dish for social change and was willing to cripple the national defense to
that end.
Yes, the officers and senior NCOs
received training, but it was refocused from bridge command and control to diversity training. Now they
can’t run a ship but are fully proficient in diversity issues. Perhaps with
a new commander in chief we’ll get
our priorities back in line with the
brick and mortar of national defense.
RANDY WEST
San Diego
Mr. West flew 127 combat missions
over North Vietnam from the USS
Kitty Hawk.
Regardless of one’s view of the
sentencing of former Sgt. Bowe Bergdahl for desertion, the state of our
military is at far greater peril than
SCOTT OLSON/GETTY IMAGES
D
REVIEW & OUTLOOK
the editorial suggests.
Two factors, if left unchecked, will
lead to a “hollow force”: uncontrolled
internal real-cost growth of 5%-7% a
year (as reported by the Defense
Business Board) and the gross mismatch between and among strategy
and operational requirements, force
levels and budgets.
A hollow force won’t be ready or
sufficiently trained and equipped to
carry out its duties or to win wars if
needed. This is what happened after
Vietnam.
This is not the fault of the Pentagon. The current budgetary-oversight
process is Frankensteinian and is also
at fault. The nation has three choices:
ignore this reality, spend more
money or balance the strategy requirements, force levels and budget
imbalance. If we defer or ignore this
looming reality, a hollow force will be
inevitable.
HARLAN ULLMAN
Washington
President Must ‘Faithfully Execute’ the Laws
William Galston’s “Donald Trump’s
Belated Civics Lesson” (Politics &
Ideas, Nov. 8) suggests that because
Congress created the position of attorney general, the president needs to
keep his hands off the Justice Department and refrain from providing direction to it. Based on this logic, the
president should stay out of foreign
affairs, have nothing to do with defense and keep his hands off every
cabinet department since all of these
are creations of Congress. The problem with Mr. Galston’s fictional independent Justice Department is that
the president is elected and therefore
accountable to the people. Mr. Galston’s independent attorney general,
secretary of defense and secretary of
state wouldn’t be accountable to anyone. They are not elected. Mr. Galston
effectively wants a new and unaccountable branch of government but
ignores Article II, Section 3 of the
Constitution which says the president
“shall take Care that the Laws be
faithfully executed.” How does the
president ensure laws are faithfully
executed if he doesn’t have access to
the Justice Department?
We’ve elected a president to run
the country. He is accountable to us at
election time and to Congress through
appropriations, legislation and possible impeachment. Let him do his job.
DOUG SCHENK
Little River, S.C.
I’d be more inclined to thoughtfully
consider Mr. Galston’s argument if I
Hoover Was a Visionary
Regarding Latin America
Edward Kosner, in his review (“A
Wonder Boy on the Wrong Side Of
History,” Books, Oct. 28) of Kenneth
Whyte’s “Hoover,” a new biography of
Herbert Hoover, neglects to make any
mention of the fact that it was Hoover who began to repair U.S. relations
with Latin America which is usually
credited to his successor Franklin
Roosevelt as part of the Good Neighbor Policy.
Taking advantage of the period between his election in November 1928
and his inauguration the following
March, Hoover embarked on a boat
trip around South America where he
experienced the furious hostility that
decades of U.S. invasions and interventions throughout the Caribbean
Basin had engendered. Hoover astutely understood how this antiAmericanism could negatively impact
U.S. companies doing business in the
region. Hence, as president, Hoover
ended the U.S. occupation of Nicaragua and began the process for doing
so in Haiti. He also didn’t intervene
in Cuban internal affairs, despite the
existence of the Platt Amendment,
and effectively abrogated Teddy Roosevelt’s Corollary to the Monroe Doctrine. He would likely have done
much more had he not been stymied
by the unfolding economic disaster
most often associated with his oneterm presidency.
THOMAS ANDREW O’KEEFE
New York
Letters intended for publication should
be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
could recall any instance of him similarly lecturing Barack Obama regarding his constitutional abuses such as
spending unauthorized funds on
ObamaCare subsidies or mobilizing
Justice and the IRS against his political foes.
BILL DOMOE
Grafton, Wis.
The president’s suggestions might
be driven by politics, but the same
could be true of any investigation. If
there was evidence of a conspiracy to
violate pollution laws, would a president’s order to investigate it be improper if he did it to curry favor with
his base?
JAMES DUEHOLM
Washington
Mr. Galston argues that assigning
jail time for offenses committed during an election campaign is only
“what autocrats do.” But the Watergate break-in was just such a crime.
Many went to jail. Nothing autocratic
about it.
WILLIAM D. EISENHOWER
Beaumont, Calif.
Seoul’s Position on Thaad:
Threat to U.S. Troops There
Your editorial “South Korea’s Bow
to Beijing” (Nov. 8) could be expanded to note that the deployment
of the U.S.-made Terminal High-Altitude Air Defense (Thaad) missile system also has, in addition to deterring or protecting from attacks by
North Korea, the critical role of protecting the 30,000 U.S. service members stationed there with their families and the equipment and supplies
which support them. South Korea
may decide for itself the amount of
protection to provide for its population. It is another matter to allow
South Korea to decide on the amount
of protection given the forces the
U.S. is dedicating to Korea’s protection. We, on the other hand, have an
overriding interest in protecting our
own.
If South Korea has priorities that
increase the exposure of U.S. forces
and their families to a less than maximum degree, we should remove our
forces and station them to a country
that more appreciates our protection,
or we should bring them home.
MICHAEL P. GRAFF
New York
Pepper ...
And Salt
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“These financials look right.
They smell right – they’re either
right or very clever.”
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THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | A21
OPINION
By John M. Ellis
T
he sheer public spectacle
of near-riots has forced
some college administrators to take a stand for
free expression and provide massive police protection when
controversial speakers like Ben Shapiro come to campus. But when Mr.
Shapiro leaves, the conditions that
necessitated those extraordinary
Political imbalance causes
intellectual degradation.
Riots against free speech
are only a symptom.
measures are still there. Administrators will keep having to choose
between censoring moderate-toconservative speakers, exposing
their students to the threat of violence, and spending hundreds of
thousands of dollars on every
speaker. It’s an expensive treatment
that provides only momentary relief
from a symptom.
What then is the disease? We are
now close to the end of a half-century process by which the campuses
have been emptied of centrist and
right-of-center voices. Many scholars have studied the political allegiances of the faculty during this
time. There have been some differences of opinion about methodology,
but the main outline is not in doubt.
In 1969 the Carnegie Commission on
Higher Education found that there
were overall about twice as many
left-of-center as right-of-center faculty. Various studies document the
rise of that ratio to 5 to 1 at the century’s end, and to 8 to 1 a decade
later, until in 2016 Mitchell Langbert, Dan Klein, and Tony Quain find
it in the region of 10 to 1 and still
rising.
Even these figures understate the
matter. The overall campus figures
include professional schools and science, technology, business and
mathematics departments. In most
humanities and social-science departments—especially those central
to a liberal education, such as history, English and political science—
the share of left-of-center faculty already approaches 100%.
The imbalance is not only a question of numbers. Well-balanced opposing views act as a corrective for
each other: The weaker arguments of
one side are pounced on and picked
off by the other. Both remain consequently healthier and more intellectually viable. But intellectual dominance promotes stupidity. As one
side becomes numerically stronger,
its discipline weakens. The greater
the imbalance between the two sides,
the more incoherent and irrational
the majority will become.
What we are now seeing on the
campuses illustrates this general
principle perfectly. The nearly complete exclusion of one side has led to
complete irrationality on the other.
With almost no intellectual opponents remaining, campus radicals
have lost the ability to engage with
arguments and resort instead to the
lazy alternative of name-calling: Opponents are all “fascists,” “racists”
or “white supremacists.”
GEORGE FREY/GETTY IMAGES
Higher Education’s Deeper Sickness
Protesting Ben Shapiro at the University of Utah, Sept. 27.
In a state of balance between the
two sides, leadership flows naturally
to those better able to make the
case for their side against the other.
That takes knowledge and skill. But
when one side has the field to itself,
leadership flows instead to those
who make the most uncompromising
and therefore intellectually least defensible case, one that rouses followers to enthusiasm but can’t stand up
to scrutiny. Extremism and demagoguery win out. Physical violence is
the endpoint of this intellectual decay—the stage at which academic
thought and indeed higher education
have ceased to exist.
That is the condition that remains
after Mr. Shapiro and the legions of
police have left campus: More than
half of the spectrum of political and
social ideas has been banished from
the classrooms, and what remains
has degenerated as a result. The
treatment of visiting speakers calls
attention to that condition but is not
itself the problem. No matter how
much money is spent on security, no
matter how many statements supporting free speech are released, the
underlying disease continues to metastasize.
During the long period in which
the campus radical left was cleansing the campuses of opposition, it
insisted that wasn’t what it was doing. Those denials have suddenly
been reversed. The exclusion of any
last trace of contrary opinion is not
only acknowledged but affirmed.
Students and faculty even demand
“safe spaces” where there is no danger that they will be exposed to any
contrary beliefs.
It is important to understand why
the radical left cleared the campuses
The Perversity of the FCC’s Ownership Limits
By Preston Padden
T
he FCC is reconsidering some
of its rules on the ownership of
TV stations. These regulations
date back to a bygone era of scarcity—predating cable television, the
internet, video downloads, streaming,
social media and other innovations
that give consumers an array of competitive options.
I have friends who believe that the
public interest requires the FCC to
keep its TV ownership rules. But my
personal experience in the industry
for over 40 years has shown me that
For decades, rules meant
to promote diversity stood
in the way of a fourth
major television network.
TV ownership limits intended to enhance diversity often stifle competition and inhibit innovation and
growth in the industry.
My first job, in 1973, was at Metromedia Inc., a company that had
emerged out of the ashes of the DuMont Television Network. In the late
1940s, television pioneer Allen DuMont warned the FCC that it must assign at least four VHF stations to each
major market to ensure the survival
of the four television networks. The
FCC ignored his advice and proved
DuMont right—his network folded,
leaving the nation for decades with
only three commercial TV networks.
Reading this history was my first lesson in how well-meaning FCC rules
can have unintended consequences
for competition and diversity.
As the DuMont Network was going
out of business, it spun off to shareholders the TV stations it owned in
New York and in Washington. Businessman John Kluge acquired de
facto control of the new company and
named it Metromedia. Kluge struggled to create a fourth network. He
aggressively sought to expand Metromedia’s portfolio of owned television
stations—the indispensable foundation of any network. But his efforts
were thwarted by the FCC’s own
rules limiting ownership. One particularly prominent obstacle was the
FCC’s “top 50” policy, which required
a “compelling public interest showing” to own more than three stations,
or more than two VHF stations, anywhere in the top 50 markets. Of
course, the three entrenched networks owned more than that, but
they were grandfathered in.
The first decade of my life in the
industry was consumed drafting and
advocating for waivers of the FCC’s
TV station ownership limits and its
top 50 policy to advance Metromedia’s quest for a fourth network. Despite spending millions of dollars on
innovative programming, Metromedia could not overcome the handicap
imposed by the FCC’s TV station
ownership rules. Kluge failed to fulfill
his objective—and the FCC’s—of creating a fourth network.
So in 1985, Kluge sold his TV stations to Rupert Murdoch, who also
acquired the then-bankrupt 20th
Century Fox film studio. Together
with Barry Diller and Jamie Kellner,
Mr. Murdoch set out to create the
long-sought fourth network. Again,
FCC rules got in the way. On behalf of
Fox, it fell to me to seek waivers of
station ownership limits and other
rules intended to promote diversity,
such as the ban on cross-ownership
of newspapers and the Financial Interest and Syndication Rules. The effort to create meaningful diversity
required the FCC to waive its rules
that were intended to create diversity. (Mr. Murdoch is executive chairman of News Corp, which publishes
this newspaper.)
Because the benefits of granting
the Fox waiver requests were so obvious, even supporters of TV ownership
regulation such as Sen. Ted Kennedy
(D., Mass.), Gov. Mario Cuomo (D.,
N.Y.) and Sen. Dan Inouye (D., Hawaii)
supported our waiver requests. Fox
eventually succeeded in becoming the
fourth major commercial network. But
it is perverse to keep in place rules intended to promote competition and
diversity if they have to be waived in
order to achieve that objective.
I offer this history because I lived
it. On many occasions I thought: Why
can’t the FCC see that these stationownership restrictions are preventing
the creation of meaningful entities of
scale that could bring to viewers the
benefits of greater competition and
diversity? In today’s world—with
hundreds of cable and satellite networks, the internet and myriad audio,
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video and other content providers—
that question is more compelling
than ever. And at a time of escalating
TV costs and cord-cutting, enabling
the creation of additional free overthe-air programming would be a
great public service.
Some oppose repeal of the TV station ownership rules because one
beneficiary of repeal might be Sinclair Broadcasting Co., which has
conservative views. Those critics
would be the first to insist that federal licensing decisions cannot—
must not—be based on political
views. And for all we know, the next
beneficiary of deregulation could
have liberal views. That is what free
markets, competition and diversity
are all about. My experience with the
television ownership rules leaves no
doubt that consumers will be well
served by their repeal.
Mr. Padden is a consultant and
former media executive. This article
is adapted from an Aug. 28 blog post
for Broadcasting & Cable.
60 YEARS OF ADVENTURE
AND DISCOVERY
of opposing voices. It was not to advance higher education, for that
must involve learning to evaluate
competing ideas, to analyze the pros
and cons of rival arguments and
concepts. Shutting down all but one
viewpoint is done to achieve the opposite: to pre-empt analysis and understanding. Only in the absence of
competing ideas can the radical sect
that now controls so much of the
campuses hope to thrive and increase its numbers, because it can’t
survive open debate and analysis,
and its adherents know it.
Given that treating only symptoms is ultimately pointless, is there
any cure for the disease? The radical
left won’t voluntarily give up the
stranglehold on higher education
that it has worked unrelentingly to
gain. But that can’t be the end of the
matter: The public pays huge sums,
both through tuition and taxation, to
educate young people, and except in
STEM subjects most of that money
is being wasted. Those who pay the
bills have the power to stop this
abuse of higher education if they organize themselves effectively.
Colleges need to be accredited;
state universities answer to governing boards. Accrediting agencies and
governing boards are created
through a political process. What if
voters were to insist that those agencies demand answers to some elementary questions? For example:
How can a department of political
science that excludes half the spectrum of viable political ideas be competent to offer degrees in the field?
How can a history curriculum be
taught competently when only one
extremist attitude to social and political questions is present in a department? How can a campus humanities
faculty with the same limitation
teach competently? How can these
extraordinary deficiencies deserve either accreditation, or support by
state and federal funds?
The campus radical monopoly on
political ideas amounts to the shutting down of liberal higher education as we have known it. That, not
the increasingly frequent violent
flare-ups, is the real crisis.
Mr. Ellis is a professor emeritus
of German literature at the University of California, Santa Cruz, and
chairman of the California Association of Scholars.
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A22 | Tuesday, November 14, 2017
THE WALL STREET JOURNAL.
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TECHNOLOGY: SOFTBANK PURSUES GRAND VISION WITH UBER DEAL B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
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Tuesday, November 14, 2017 | B1
LIBOR 3M 1.416
NIKKEI (Midday) 22441.24 À 0.27%
Google FacesRegulatoryFire inU.S.
Missouri probes giant,
which had avoided
scrutiny at home
despite inquiry abroad
BY JACK NICAS
Google is facing a new front
in its regulatory battles after
Missouri’s attorney general
launched a broad investigation
into whether the internet giant’s business practices violate
STREETWISE
By James Mackintosh
the state’s consumer-protection and antitrust laws.
Missouri Attorney General
Josh Hawley on Monday said he
issued an investigative subpoena to probe Google’s collection of user data, its use of
other sites’ content, and its alleged manipulation of search results to favor its own services.
Google, a unit of Alphabet
Inc., has so far skirted the scrutiny in the U.S. that it has faced
in Europe, where regulators levied a record $2.7 billion fine
against Google in June for allegedly favoring its shopping ads
in its search results. Mr. Hawley
said his investigation was in
part prompted by the European
fine. “We’re concerned they’re
engaged in a similar pattern of
behavior in the United States,”
he told reporters.
Google said in a statement:
“We have not yet received the
subpoena; however, we have
strong privacy protections in
place for our users and continue to operate in a highly
competitive and dynamic environment.” It has disputed European regulators’ charges.
The Federal Trade Commission ended a nearly two-year
antitrust investigation into
Google in early 2013 after the
company agreed to make some
changes to its business practices
for five years—a period that is
about to expire. In the U.S.,
some federal lawmakers such as
Sen. Al Franken (D., Minn.) have
called for new probes into the
company’s power.
Mr. Hawley said the FTC
went too easy on Google. “That
seemed to me to be short even
of a slap on the wrist. Now this
is why I think there needs to be
a fuller inquiry,” he said in an
interview. “I don’t see a lot of
action coming out of Washington. I don’t see a lot of action
coming out of the FTC.…So I
think that it’s important that
some law-enforcement agency
actually steps forward.”
The FTC pointed to past
Please see GOOGLE page B2
Yield-Seeking Investors Hunger for Egypt’s Government Debt
Small IPOs
Are Dying.
That’s Good
The U.S.
stock market is
eating itself,
and nothing
could be better
for shareholders. There has been a decadelong drought in initial public
offerings, fewer companies are
listed now than four decades
ago and companies are buying
back as many or more shares
than they sell.
The shrinking number of
stocks has prompted a lot of
hand-wringing among economists, who worry that companies are deterred from accessing capital markets by shorttermist shareholders and
aren’t investing enough. The
alternative theory is much
more upbeat: Markets have become more efficient, and
America is awash in capital.
There is a genuine problem of
reduced competition, but that
isn’t the fault of the capital
markets.
Mentioning the words “efficient” and “markets” in the
same sentence has been a
route to ridicule since the financial crisis. But when it
comes to smaller companies, it
seems founders and CEOs have
indeed found a way to eliminate one of the market’s bestknown anomalies, known as
the small-capitalization effect.
Small-cap stocks used to
beat the market pretty reliably.
Economists argued over
whether this was a reward for
the extra risk they carried or
was a result of investors being
unwilling to spend the time
and effort to research tiny
companies.
Either way, it meant smallcap stock prices were on averPlease see STREET page B9
A Cairo vegetable market
Investors snapped up
Egypt’s local currency
bonds after its pound
lost 50% of its value and
the central bank sharply
raised interest rates.
See article on B9
How many Egyptian
pounds a dollar buys
8 Egyptian pounds
Percentage of local-currency
bond managers with exposure
to Egyptian debt and the pound
Egypt’s overnight deposit rate
60%
20%
10
50
12
40
Scale inverted to
show weakening
Egyptian pound
14
16
18
Exposure to
Egyptian bonds
Exposure to
Egyptian pound
30
14
12
10
10
Source: Tullett Prebon (currency); eVestment (bonds, pound); FactSet (rate)
0
8
0
2016
2016 ’17
16
20
0
20
18
’17
PHOTO: MOHAMED ABD EL GHANY/REUTERS
2016
’17
THE WALL STREET JOURNAL.
New U.S. Boss Must Refresh Bud
BY JENNIFER MALONEY
Anheuser-Busch InBev NV
is shuffling the leadership of its
North American business, putting another company veteran
from Brazil in charge of the
largest U.S. brewer as it struggles to end a long slump in sales
of Budweiser and Bud Light.
Michel Doukeris, chief sales
officer for the global brewer,
will take the helm of the U.S.
subsidiary, Anheuser-Busch,
on Jan. 1, succeeding João
Castro Neves, who has run the
division since 2015. Mr. Castro
Neves, 50 years old, is leaving
after 22 years at the company
“to pursue other opportunities,” AB InBev said.
The shake-up includes a
handful of other executive
changes, including the promotion of a PepsiCo Inc. alum
and former U.S. intelligence
officer, Brendan Whitworth, to
vice president of sales for
North America, succeeding
Brazilian Alex Medicis.
AB InBev’s sales in the U.S.
have fallen as Americans shift
away from domestic lagers toward craft beers, Mexican imports, wine and spirits. The
company’s share of the U.S.
beer market, its largest, fell to
44.1% in 2016 from 50.6% in
2008, according to research
firm Euromonitor International. That slide has continued this year, especially for its
biggest seller, Bud Light.
The management changes
mark a new phase for the
company’s U.S. operations,
said Carlos Brito, chief executive of the Belgium-based behemoth. The first phase, after
InBev’s 2008 takeover of Anheuser-Busch, was aimed at
cutting costs and paying off
debt. The second focused on
expanding the portfolio with
craft beers and growing
higher-end brands such as
Stella Artois and Michelob Ultra, Mr. Brito said.
“Now, we’re going to have a
Please see BUD page B2
See more at WSJMarkets.com
Qualcomm
Rebuffs
Bid From
Broadcom
BY TED GREENWALD
Qualcomm Inc. rejected
Broadcom Ltd.’s unsolicited
$105 billion offer, setting up a
potentially hostile showdown
between two giants of the chip
industry over what would be
the biggest technology takeover ever.
A combination of the two
would create a huge company
whose chips manage communications for consumer devices
and appliances, phone-service
providers and data centers.
In a statement Monday,
Qualcomm’s board said the offer, which Broadcom submitted last week, dramatically undervalues the company and
comes with significant regulatory uncertainty. Broadcom
said it remains committed to
the deal.
With Qualcomm’s rejection
of Broadcom’s bid, both companies are under pressure to
press their agendas as quickly
as possible. The rejection
could lead to a higher bid
from Broadcom, and it sets the
stage for a possibly drawn-out
struggle for control of the
Qualcomm board.
Broadcom could try to stack
that board with directors sympathetic to its goal. Broadcom
has a few weeks to meet a
deadline for submitting its
slate of nominees and a few
months to persuade Qualcomm shareholders to vote for
them before the likely date of
its next annual stockholder
meeting, according to a person
familiar with the matter.
Qualcomm, for its part, is
under pressure to close its acquisition, announced late last
year, of automotive chip
leader NXP Semiconductors
NV. That deal could add
enough per-share earnings to
persuade investors that its
value exceeds Broadcom’s bid,
some analysts say.
Broadcom’s pursuit also
adds pressure on Qualcomm to
settle its differences with Apple Inc. over patent royalty
fees. The conflict threatens to
hold up billions in annual royalties revenues, and it risks
emboldening other customers
and licensees to follow Apple’s
lead.
— Cara Lombardo
contributed to this article.
INSIDE
Weinstein Directors Dispute Boies Role
ANDREW HARRER/BLOOMBERG NEWS
BY KEACH HAGEY
High-profile litigator David Boies
Star lawyer David Boies
fended off concerns of Weinstein Co. directors about Harvey Weinstein’s alleged sexual
harassment and assault without
alerting them he was in business with Weinstein Co., according to two board members.
Weinstein Co. independent
directors Tarak Ben Ammar, an
international movie producer,
and Lance Maerov, executive
vice president at ad-agency giant WPP, said in interviews
they didn’t know Mr. Boies had
a film-business relationship
with the company while he was
negotiating a contract on Mr.
Weinstein’s behalf in 2015.
Mr. Boies has invested in at
least three films with Weinstein
Co., according to people familiar with the matter, one of
which was distributed by the
company last year after the
film ran into financial troubles.
In a statement, Mr. Boies
said “the board was aware of
the investments.” A person familiar with the matter said Mr.
Boies’s investment in the film
that was distributed last year
amid contract talks was listed
in materials given to the board,
and was reported in the trade
press.
Mr. Ben Ammar said the
board was presented the
names, directors and budgets of
the films Mr. Weinstein was
working on during the contract
negotiations, but “I have no
recollection that they listed David Boies as the producer, especially when you have 50 movies.”
“Had we known, we would
have immediately said to David
Boies, ‘You can’t negotiate Harvey’s contract,’” Mr. Ben Ammar said, calling it a conflict of
interest. Mr. Boies in his statement said it wasn’t a conflict.
Legal ethics expert Stephen
Gillers of New York University
School of Law agrees with Mr.
Boies. “I don’t think he had a
duty to tell the board that he
had this investment, because I
don’t see that the board, as the
other side of the negotiation
and not a client, had any right
to know that,” Mr. Gillers said.
Some of the movie dealings
were happening as Mr. Boies
fought to keep the company’s
board from accessing the executive’s personnel file while
Weinstein directors were growing concerned about allegations
of sexual assault that appeared
in the media in the spring of
2015, and other alleged bad bePlease see BOIES page B2
BITCOIN
SINKS 25% IN
LATEST SWING
CURRENCIES, B10
PRICES
OF USED CARS
HOLD FIRM
AUTOS, B5
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Tuesday, November 14, 2017
INDEX TO BUSINESSES
E
Airbus..........................B3
Alaska Gasline
Development...........B11
Alphabet......................B1
Altice USA..................A6
Anheuser-Busch InBev
.....................................B1
Eli Lilly........................A2
Embraer.......................B3
Euromonitor
International.............B1
B
Baker Hughes...........A13
Bank of New York
Mellon.......................B9
Barclays.......................B5
BB&T ........................... A6
Boeing ......................... B3
Bombardier..................B3
Broadcom.............B1,B10
Brookfield Property
Partners....................B3
Buffalo Wild Wings....B5
C
Cboe Global Markets B10
Cheniere Energy........B11
Citigroup......................B9
CME Group................B10
CVS Health..................B4
PepsiCo........................B1
PNC Financial Services
Group ........................ A6
Proteus Digital Health
.....................................B4
F
Q
Ford Motor..................B5
Qualcomm............B1,B10
G
R
General Electric
......................A1,B10,B11
GGP..............................B3
Goldman Sachs Group B5
Relativity Media.........B2
Renault........................B4
Roark Capital Group...B5
H
Snap............................A6
SoftBank Group..........B4
SolarWorld Americas . R6
Sullivan & Cromwell...B2
Suniva..........................R6
SunTrust Banks..........A6
Hasbro.......................B10
J
JPMorgan Chase.........B9
M
Marcato Capital
Management.............B5
Mattel........................B10
Microsoft.....................B2
Mitsubishi Motors......B4
N
Nissan Motor..............B4
Novartis.......................B4
D
O-P
Delta Air Lines ........... B3
Didi Chuxing Technology
.....................................B4
Oracle .......................... B4
Otsuka Pharmaceutical
.....................................B4
S
T
Trian Fund Management
...................................A13
Tyson Foods................B5
U
Uber Technologies ...... B4
U.S. Bancorp...............A6
W
Weinstein....................B1
Z
Zions Bancorp.............A6
INDEX TO PEOPLE
A
Alsaadi, Nawar ........... R5
Ammar, Tarak Ben......B1
B
Barrineau, Jim............B9
Boies, David................B1
Brito, Carlos................B1
C
Castro Neves, João.....B1
Cohen, Rodgin.............B2
Cromer, Fred ............... B3
D
Dehn, Jan....................B9
Doukeris, Michel.........B1
Dudley, Louise...........B11
Duterte, Rodrigo.........A8
E
Economides, Nicholas.B2
F-G
Flannery, John.....A1,B11
Garden, Ed ................ A13
Gibbons, Thomas........B9
Gillers, Stephen..........B1
Goeler, Andy ............... B2
Gordon, Kate...............R5
Goyal, Anil...................B5
H
Hallam, Roger...........B11
Heckman, Dan...........B10
I
Immelt, Jeffrey.A13,B11
K
Kablawi, Hani..............B9
L
La Salla, Francis ......... B9
M
Maerov, Lance.............B1
Marinov, Valentin.....B11
McAlister, Kevin.........B3
McDonagh, Colm.........B9
Medicis, Alex .............. B1
Mohr, Patrick ............ B11
P
Patel, Viraj................B11
Peterffy, Thomas......B10
Prime, Denise ............. B9
R
Reback, Gary...............B2
Ren, Zhiwei...............B10
S
Santomassimo, Michael
.....................................B9
Scharf, Charles............B9
Seba, Tony...................R5
Seshadri, Gautam.......B4
Shea, Brian ................. B9
Slattery, John.............B3
Son, Masayoshi .......... B4
W
Weinstein, Bob...........B2
Weinstein, Harvey......B1
Whitworth, Brendan...B1
BUSINESS & FINANCE
BOIES
Continued from the prior page
havior, according to documents
reviewed by The Wall Street
Journal.
The board fired Harvey
Weinstein Oct. 8 after media reports included on-the-record
claims that Mr. Weinstein harassed or assaulted actresses or
employees. Through his spokeswoman, Mr. Weinstein has denied allegations of nonconsensual sex.
The dual roles Mr. Boies
played with Mr. Weinstein have
triggered questions from the
two directors about why the
lawyer fought so hard to keep
Mr. Weinstein’s personnel file
from them, as shown in the
documents.
After the scandal concerning
Mr. Weinstein surfaced, several
board members resigned, leaving Messrs. Ben Ammar and
Maerov, the two independent
directors, and Mr. Weinstein’s
brother, Bob Weinstein, on the
board. Bob Weinstein didn’t respond to a request for comment.
In 2015, as Mr. Boies was negotiating Mr. Weinstein’s contract with directors, the company’s five independent board
members were receiving “numerous credible reports from
company insiders that employees had previously lodged complaints against Mr. Weinstein,
including for sexual harassment, intimidation and physical
assault,” according to an Aug.
6, 2015, letter to Mr. Boies from
Philip Richter, a lawyer hired by
the independent directors, that
was reviewed by the Journal.
The company’s independent
board members began a review
of Mr. Weinstein’s dealings in
November 2014, after a number
of his expenses raised questions, according to the documents. Mr. Weinstein’s spokeswoman had no comment on the
HONG JIANPENG/IMAGINECHINA/ASSOCIATED PRESS
GOOGLE
Michel Doukeris will take the reins at Anheuser-Busch Jan 1.
BUD
Continued from the prior page
more commercially minded person at the head of the business”
with a background in sales and
marketing, Mr. Brito said in an
interview. The new chief’s mandate: to boost revenue.
Mr. Doukeris, a 44-year-old
Brazilian, joined the company
in 1996. He worked as vice
president of soft drinks for
Latin America before moving
to China, where he rose to become head of the company’s
Asia-Pacific operations in
2013. He is based in New York.
The new Anheuser-Busch
chief said he aims to increase
speed to market and pledged
to invest more in data and analytics to do more targeted local and regional marketing.
“We need to understand the
consumer needs,” Mr. Doukeris
said in an interview.
Messrs. Doukeris and Brito
said they would continue to
develop the brewer’s portfolio
to offer brands that work for
different occasions and didn’t
rule out further acquisitions.
The company is still digesting
its $100 billion merger with
SABMiller last year, which
lessened its reliance on the
U.S. market.
AB InBev has been unable
to arrest a nearly two-decade
2008
’10
’12
’14
’16
decline in Budweiser sales,
even as it has moved aggressively to expand Budweiser
distribution around the globe.
Retail store sales of Bud
Light, the No. 1 U.S. beer
brand by volume, fell 5.7% this
year through Oct. 21, according to Nielsen data compiled
by Beer Marketer’s Insights.
Wholesalers, industry observers and former AnheuserBusch executives have faulted
the company for frequent
changes in its Bud Light marketing campaigns, high turnover in its brand leadership,
and a lack of understanding of
U.S. culture among those in
charge of reviving an iconic
American beer.
AB InBev in March addressed some of those concerns with the announcement
that Andy Goeler, a three-decade Anheuser-Busch veteran,
would return to the helm of
Bud Light, a brand he led in
the 1990s.
Mr. Brito said that for a
brand so large, “it is sometimes
a challenge to find the right
tone. You need to appeal to a
large group of consumers, but
you need to have a target audience to really focus your communications. So how do you do
that without alienating people?”
Mr. Brito said he is optimistic about the brand’s two
current campaigns and its recent push to court Hispanic
consumers. “Of course, if you
have people that understand
the local culture and understand the business and love
the company…this is a great
combination.”
Noting that Mr. Doukeris
has a record of developing “local talent” in China, Mr. Brito
pointed to the promotion of
Mr. Whitworth, who joined AB
InBev in 2013 after five years
in PepsiCo’s Frito-Lay division.
Mr. Whitworth, 41, previously
served as a U.S. Marine Corps
officer and as an operations
officer for the Central Intelligence Agency’s clandestine
service, according to his
LinkedIn page.
Continued from the prior page
comments from commissioners that stated its “exhaustive
investigation” into Google
found the company’s practices
weren’t “on balance, demonstrably anticompetitive.”
Mr. Hawley, a 37-year-old
Republican lawyer who was
elected as Missouri’s attorney
general last year, announced
last month that he is running
for Democratic U.S. Sen. Claire
McCaskill’s seat in 2018.
Some critics and competitors of Google see state attorneys general as potentially the
most likely route to regulatory
action in the U.S.
Mississippi Attorney General Jim Hood has sued Google
several times, including in January over its collection and use
of data on Mississippi publicschool students who use its
services. Mr. Hood is looking
closely at other aspects of
Google’s business and consid-
questions about his expenses.
The inquiry intensified in the
spring of 2015 after Mr. Weinstein’s photo began appearing
in New York tabloids in connection with allegations that he
groped an Italian model, according to the documents.
The directors pressed to review Mr. Weinstein’s personnel
file, according to the documents the Journal reviewed.
Mr. Boies argued they shouldn’t
be allowed to see the file because they had been leaked to
the media in the past, a claim
the independent directors deny.
Mr. Boies said in his statement that he had been articulating Mr. Weinstein’s position
about the alleged leaks.
Mr. Boies pushed to have a
third party, Rodgin Cohen of
law firm Sullivan & Cromwell,
review the personnel file and
write a report to the board. The
directors agreed reluctantly after failing to obtain the file
themselves, the people familiar
with the matter say.
Mr. Cohen wrote on Sept. 4,
2015, in a letter reviewed by the
Journal, that based on his review of the file “there are no
unresolved claims that could
result in liability to TWC or its
directors” and “no pending or
threatened litigation.”
The board voted to renew
Mr. Weinstein’s contract as cochairman in the fall of 2015.
Mr. Boies, who represented
Al Gore in the 2000 presidential-election recount and argued
for marriage equality before the
Supreme Court, invests in films
through the Boies/Schiller Film
Group, which he co-founded
with his law partner’s son, Zack
Schiller.
The most notable investment
by Boies/Schiller was a $20million share in the Natalie
Portman Western “Jane Got a
Gun,” which Weinstein Co. and
Relativity Media agreed in 2013
to distribute. After the muchdelayed project cycled through
talent and racked up costs, Relativity went bankrupt in the
summer of 2015.
Weinstein Co. agreed to give
the film a so-called service deal
in theaters in January 2016, according to people familiar with
the deal. With a service deal, a
film’s producers give the distributor a percentage of the
box-office returns to get a film
onto movie screens, allowing
the producers to reap greater
revenues from selling the film
to foreign markets.
Weinstein released “Jane”
without much marketing, and
the film made just $1.5 million
in its opening weekend and $3
million overall—a poor performance for a film that cost $25
million to produce.
Weinstein Co.’s decision to
release “Jane” this way came
shortly after Mr. Boies in 2015
secured a new contract for Mr.
Weinstein, the documents the
Journal reviewed show. In a
statement, Mr. Boies said the
Boies/Schiller Film Group is
still waiting to be paid by The
Weinstein Co. for the theatrical
run of “Jane.”
—Zolan Kanno-Youngs
contributed to this article.
WEINSTEIN COMPANY/EVERETT COLLECTION
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
THE WALL STREET JOURNAL.
* ***
Boies/Schiller had a $20-million share in the Western ‘Jane Got a Gun’ starring Natalie Portman.
ering further action, a person
familiar with the matter said.
Utah Attorney General Sean
Reyes and District of Columbia
Attorney General Karl Racine
last year called on the FTC to
reopen its antitrust investigation into Google. This year,
when Mr. Reyes was a candidate for FTC chairman, Google
deployed Republican lobbyists
to dissuade Trump administration officials from naming him
to the post, according to people familiar with the matter.
Mr. Reyes said in an email
that the FTC never replied to his
call for a new federal probe.
“We may have to take matters
into our own hands as state attorneys general on those and
possibly other issues,” he said.
“In many ways, we can be more
effective investigating and if
necessary, holding companies
accountable at the state level.”
He declined to say whether his
office was investigating Google.
States usually team up to
prosecute large corporations
like Google, with bigger states
like New York or California lead-
why did
the turtle cross
the ocean?
ing the way, said New York University economics professor
Nicholas Economides. He predicted Missouri would try to recruit other states if it seeks
charges. “Google is going to be a
significant case,” he said. “If it’s
going to be just Missouri, that
would be a very unequal fight.”
The federal government’s antitrust case against Microsoft
Corp. in 2001 began with an investigation by the Texas attorney
general, said Gary Reback, a key
attorney who persuaded the Justice Department to sue Microsoft.
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Tuesday, November 14, 2017 | B3
THE WALL STREET JOURNAL.
BUSINESS NEWS
Brookfield
Confirms
Its Offer
For GGP
Brookfield Property Partners LP confirmed it has made
a $14.8 billion offer Monday to
buy the shares of mall owner
GGP Inc. that it doesn’t already own.
Brookfield offered to pay
$23 a share for the remaining
66% of GGP, half in cash and
half in equity, the company
said.
The Wall Street Journal
first reported Sunday that the
proposal had been submitted
to GGP’s board.
The proposal represents a
21% premium to GGP’s closing
price Nov. 6, before reports
were published about a possible deal between the two companies. GGP shares rose 6%
Monday, while Brookfield
shares slid 3%.
Some analysts said Monday
Brookfield appears to be opening with a low bid. Analysts
from research firm Boenning &
Scattergood said that a bid
would have to be at least $30
a share to be successful, adding that Brookfield’s offer
could prompt mall-centered
real-estate investment trust
Simon Property Group Inc. to
enter as a counter-bidder.
Brookfield said the transaction would create a property
company with nearly $100 billion of real-estate assets and
annual net operating income
of about $5 billion.
Brookfield Property, which
is part of Brookfield Asset
Management Inc., owns or operates office properties, retail
centers and multifamily housing units. GGP owns around
125 high-end retail centers
around the U.S.
GGP, formerly known as
General Growth Properties,
confirmed receipt of the offer
Monday and said it has
formed a special committee to
carefully review the proposal.
MICHAEL BUHOLZER/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY CARA LOMBARDO
The Canadian aircraft maker’s single-aisle CSeries plane project has faced legal challenges from Boeing and Embraer over issues such as pricing and import tariffs.
Bombardier Deal Sparks Pushback
Tie-up with Airbus on
CSeries planes is met
with stepped-up
resistance from rivals
BY ROBERT WALL
DUBAI—Struggling Bombardier Inc.’s move to give
Airbus SE control of its
CSeries plane project has
driven rivals to renew their
pledges to pursue legal complaints against the Canadian
aircraft maker.
Both Boeing Co., which already had the CSeries in its
crosshairs before the involvement of its chief rival, and
Brazil’s Embraer SA said this
weekend they would stick with
their legal challenges against
Bombardier’s program. Embraer also warned Bombardier
and Airbus against working on
the project before the deal had
won antitrust approval.
The stakes are high, with
the Airbus-Bombardier tie-up
seen by some as the biggest
shake-up of the commercial
jetliner business in 30 years.
Through the deal, Airbus
would gain majority control of
a joint venture building the
single-aisle CSeries—a struggling program that the European company thinks could
have big potential. Airbus forecasts a market of about 6,000
planes and expects the CSeries
to win most of the deals in the
100- to 150-seat segment.
At the Dubai Air Show—the
first industrywide get-together
since the deal was announced
in October—tensions over the
project were on display.
Boeing has challenged Bombardier’s pricing of the
CSeries, saying it was being
sold to Delta Air Lines Inc.
below cost, with its complaint
prompting U.S. authorities in
September to propose a 300%
import tariff on the plane.
In Dubai, Boeing’s commercial airplanes chief, Kevin
McAllister, reiterated the U.S.
company’s objections, saying
the issue was one of “clear
price dumping.”
Fred Cromer, Bombardier’s
president for commercial aircraft, said Boeing would struggle to demonstrate it was
harmed, since the U.S. manufacturer doesn’t offer a plane
that competes with the 100seat CS100 that Delta is buying.
“We think that [proving
harm] is very challenging,” Mr.
Cromer said at the air show.
Bombardier has said it was
looking to assemble CSeries
planes at an Airbus facility in
Mobile, Ala., to circumvent the
tariffs if they stick.
Embraer was also resolute,
with the firm’s commercial airplanes boss, John Slattery, saying the Airbus deal wouldn’t
undermine Brazil’s World
Trade Organization challenge
of the CSeries program for alleged subsidies provided by
the Canadian government.
“The case will continue,” he
said in an interview at the air
show.
Bombardier’s Mr. Cromer
said the Canadian company
was “fully compliant” with
trade rules.
Mr. Slattery also said Embraer would be watching
closely to ensure Airbus officials don’t try to start selling
CSeries planes before competition regulators give the deal a
green-light. Antitrust approval
is expected in late 2018.
“Until antitrust immunity is
granted, the Airbus marketing
team cannot be involved in the
aircraft. That will be something
my team and I will be keeping
a close eye on,” he said.
Analysts say the Airbus
deal could be a big boost for
the CSeries because it brings
certainty to the future of a jet
series that has struggled to
land new orders amid concerns about Bombardier’s financial health.
Mr. Cromer said Bombardier could work with Airbus in
a limited way before antitrust
approvals were in hand. The
two companies can jointly
plan how to build the CSeries
assembly facility in Mobile.
That would position them to
start construction once regulatory approvals are in place
and have the facility operational about a year later.
Under that schedule, CSeries
deliveries to Delta may be delayed until the new facility is
running, to try to avoid tariffs.
Mr. Cromer said Bombardier
would have to shuffle some delivery positions in 2018 to
other customers.
The aircraft maker forecasts 40 to 45 CSeries deliveries in 2018.
Since Bombardier announced the deal with Airbus,
it said it had won a commitment for up to 61 more
CSeries orders from a European customer. Mr. Cromer
wouldn’t identify the client,
but said interest in the plane
“continues to build.”
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B4 | Tuesday, November 14, 2017
* ****
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
SoftBank Pushes Its Grand Vision Digital
Pill Wins
Masayoshi Son is
piecing together
network of ride-hailing
firms in key markets
FDA’s
Approval
SoftBank Group Corp.’s bid
to take a stake of as much as
$10 billion in Uber Technologies Inc. is a high-stakes bet on
the future of the car industry.
SoftBank’s
billionaire
founder, Masayoshi Son, aims
to build a global network of
ride-hailing companies with a
lock on important markets
that in the next 20 or 30 years
could control fleets of vehicles
and help dictate how people
move around, say people
briefed on his strategy.
To do that, the Japanese
tech-investment giant and a
new fund it runs have invested
billions of dollars in companies that dominate the business in China, India and
Southeast Asia, as well as in
Uber’s biggest rival in Brazil.
Mr. Son took a step forward
with his plans to buy as much
as 14% of Uber on Sunday,
when Uber board members
settled a feud over control of
seats, clearing the way for
SoftBank’s tender offer.
But not everyone shares Mr.
Son’s grand vision, even
within the companies in which
SoftBank has taken a stake.
Companies
including
Google parent Alphabet Inc.
and car makers such as Toyota
Motor Corp. and Nissan Motor
Co. have different ideas on
how the future will unfold.
“The traditional business of
building cars and selling cars
and owning cars will continue,” Carlos Ghosn, chairman
BY PREETIKA RANA
ZUMA PRESS
BY MAYUMI NEGISHI
AND PHRED DVORAK
An Uber carpooling station located in Beijing. Japan’s SoftBank has been pursuing plans to purchase as much as 14% of the company.
of the alliance between Nissan,
Renault SA and Mitsubishi
Motors Corp., said at a conference last week when asked
about ride-hailing versus car
ownership. “A lot of people
think this is substitution. It’s
not: It’s addition.”
And within the SoftBank
stable, rivalries persist. Uber
competes with many of the
other companies in Mr. Son’s
network. Chinese ride-hailing leader Didi Chuxing
Technology Co.—in which
SoftBank led a $5.5 billion
investment round this year—
Didi shares its knowledge with
partners around the globe, she
said, and declined to comment
on SoftBank’s strategy.
SoftBank will be pressed to
sort out differences among its
global network, said Gautam
Seshadri, co-founder of ZPX, a
Singapore-based
financial
company that helps match
buyers and sellers of private
stakes in tech companies.
“You’re going to see more
of these situations, and SoftBank’s going to be front and
center,” Mr. Seshadri said.
Mr. Son declined to be in-
has its own visions of global
domination.
Didi has bought stakes in
more ride-hailing companies
than SoftBank and says it
wants its technology to be used
by them. Other companies that
SoftBank has invested in don’t
necessarily welcome that, said
a person familiar with those
companies’ thinking.
“Didi handles over 25 million
daily rides, twice as many as
what everyone else adds up to,”
a Didi spokeswoman said. “We
are in the position to develop
the most advanced algorithms.”
terviewed for this article.
The ride-hailing companies
that SoftBank has in its portfolio so far include the owner
of the popular Ola app in India; Singapore-based Grab Inc.,
which is strong in Southeast
Asian nations such as Indonesia and the Philippines; 99 in
Brazil; and Didi in China.
One potential area of conflict
has been cleared up: Last year
Uber swapped its China business
for a minority stake in Didi. Others remain to be sorted out. Uber
has tried to challenge Grab’s
dominance in Southeast Asia.
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OFFICE OF SCIENCE AND TECHNOLOGY
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As tensions mount between
President Donald Trump and
his fiercest critics in Silicon
Valley, Michael Kratsios has
the thorny task of playing
peacemaker.
Mr. Kratsios, one of the
White House’s top technology
advisers, is developing a hightech policy agenda that he says
will spur innovation in emerging technologies such as drones
and artificial intelligence.
“We are really working on
issues that policy makers have
never tackled before,” Mr.
Kratsios, the U.S. deputy chief
technology officer, told The
Wall Street Journal in his first
major interview since his appointment in March. “It’s just
a question of putting smart
people around a table and trying to come up with an innovative approach to regulating”
new technologies, he said.
To do that, he will need to
work closely with the science
and tech communities—some
of the staunchest critics of Mr.
Trump’s policies. Leading scientists and tech executives
have abandoned White House
advisory councils and complained that the president’s
policies in areas like climate
change and immigration
threaten to reverse years of
economic and social progress.
It may help that Mr. Kratsios, 31 years old, hails from
the world of technology, having spent seven years as an
executive at venture-capital
firms founded by Silicon Valley luminary Peter Thiel. A
former college intern for Sen.
Lindsey Graham (R., S.C.), Mr.
Kratsios said he hoped to
eventually pursue a career in
public service.
That opportunity came
sooner than expected when Mr.
Trump won the presidency last
November, and Mr. Thiel—one
of the tech industry’s most
prominent supporters of the Republican—brought Mr. Kratsios
with him to New York to work
on Mr. Trump’s transition team.
Mr. Kratsios now oversees
the tech team at the Office of
Science and Technology Policy,
a department that helps the
president shape a range of
policies, from rural broadband
access to space travel.
Tech leaders say they are
engaging with Mr. Kratsios’s
office cautiously. Brad Smith,
Microsoft Corp.’s president
and chief legal officer and one
of the most outspoken critics
U.S. authorities approved
the world’s first digital drug,
an antipsychotic pill that signals smartphones once it
reaches the gut so doctors can
track whether patients are
taking their medication.
Tuesday’s greenlight from
the Food and Drug Administration means Japan’s Otsuka
Pharmaceutical Co. can implant a chip containing minerals like silicon, magnesium and
copper inside tablets of Abilify,
which is widely used to treat
schizophrenia, bipolar disorder and other mental illnesses.
Once swallowed, the chip
mixes with stomach acids and
sends a heartbeat-like signal
to an adhesive patch worn on
a patient’s torso. The patch records the dosage and time of
ingestion and relays this to a
smartphone app for patients
to monitor and share with
doctors and caretakers.
Otsuka spent years testing
the drug with Silicon Valley
company Proteus Digital
Health Inc., which provided
the chip technology.
The invention is intended
for patients with mental illnesses who don’t always take
their medication or may be
forgetful. Digital drugs may
also solve a couple of problems facing pharmaceutical
companies and insurers: lower
drug sales because of missed
doses and higher medical
costs treating patients whose
conditions worsen.
But Otsuka faces basic
questions: whether patients
and physicians want digital
pills, and, if so, how much insurers are prepared to pay.
The Japanese drugmaker
must convince doctors that
digitized Abilify significantly
improves patients’ compliance
compared with the analog pill
and cheaper copies now available. Otsuka also needs to
show insurers the extra cost
for the high-tech drug creates
savings in treatment.
Otsuka’s digital pill is competing against its own alternative form of Abilify: A longacting injection that reduces
Michael Kratsios is developing a high-tech policy agenda.
Vacancies Abound
At Science Office
The White House has yet
to nominate a director for the
Office of Science and Technology Policy, a Senate-confirmed
position. Michael Kratsios, who
will report to the director as
deputy, declined to reveal any
candidate names or the timing
of a nomination.
The vacancy of that and
several other key OSTP positions, as well as a sluggish pace
of hiring, has led to speculation
in the science and tech communities that science is a low priority for the administration.
The office currently employs
about 45 people, Mr. Kratsios
said. He plans to grow the office to about 60 employees—
less than half the size of the
of President Trump’s policies,
said he is “committed to working constructively with OSTP
and the administration more
broadly on issues where we
have common ground.” In September, he appeared alongside
Ivanka Trump in Virginia to
help announce the administration’s plans to bring more coding instruction to U.S. schools.
The Trump administration
drew opposition from Silicon
Valley when it took steps to
dismantle the International
Entrepreneur Rule, an immigration policy that President
Barack Obama’s tech advisers
office at its peak under the
Obama administration. Mr. Kratsios said he thinks he can make
more efficient use of fewer
people, as the OSTP tends to
rely heavily on the expertise of
other federal agencies.
The nomination of an OSTP
director, in particular, will be
closely watched for its implications on U.S. climate-change
policy.
A government report earlier
this month drew a direct line
between human activity and
the quickening pace of climate
change, a finding at odds with
Mr. Trump’s moves to reverse
policies meant to combat climate change.
“The climate is changing,
and I don’t think anyone is disputing that,” said Mr. Kratsios,
who added that he aims to
promote technology to reduce
emissions.
at the OSTP created to help
foreign-born entrepreneurs
stay in the U.S. to build startups. A group representing top
venture-capital investors has
sued the administration,
claiming it took illegal steps to
prevent the rule from being
enacted.
Mr. Kratsios declined to
comment on the International
Entrepreneur Rule, but said he
supports a merit-based immigration system “that encourages the world’s best and
brightest to come to the U.S.
and build great technology
companies.”
the risk of patients’ missing
doses because it is supervised
by a doctor.
An Otsuka spokeswoman
said the injectable is “not appropriate for all patients,” and
“so there is a need to have a
number of treatment options
to choose from.”
Insurers will only cover digital Abilify once they see “realworld evidence that this is a
better approach,” said Troyen
Brennan, the chief medical officer of CVS Health Corp.,
which administers drug benefits for employers, insurers
and some state Medicaid programs in the U.S.
Ingestible devices, such as
capsules that take pictures inside the body, have been around
for years. But this the first time
such a device has successfully
been paired with a drug.
Venture capitalists are betting on digital health care.
They poured $4.2 billion into
296 such startups in the U.S.
last year, a fourfold increase in
investment since 2011, according to Rock Health, a San Francisco-based venture capital
fund. Companies that got funding last year were engaged in
wearable technologies, digital
devices, big data analysis and
genomic sequencing.
The smallest vial of the
long-acting injectable has a
list price of $1,478. It is administered once a month and
covered by major U.S. insurers.
Kabir Nath, who manages
Otsuka’s drug business in the
U.S., said the company hasn’t
decided on a price for digitized Abilify.
Proteus, a Redwood City, Calif.-based startup that developed
the chip-and-patch system,
counts Otsuka, Novartis AG and
Oracle Corp. among its investors. Proteus Chief Executive
Andrew Thompson said the ingestible chip is safe to consume.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
Tuesday, November 14, 2017 | B5
THE WALL STREET JOURNAL.
BUSINESS NEWS
Used-Car Prices Are
Unexpectedly Strong
BY MIKE COLIAS
Used-car prices have held
up this year, defying predictions. That is bad news for
shoppers, but the trend is
helping buoy the outlook for
auto makers, dealers and
rental-car companies.
Prices of used cars were expected to plummet starting in
2017 as millions of vehicle
leases expired and people who
bought following the financial
crisis exchanged their old
rides for new ones. Softening
prices in the preowned market
million in the three years ending in 2019, 49% more than
the same three-year period
that ended in 2016, according
to research firm J.D. Power.
Thus far, the market is absorbing the extra supply,
thanks to tighter inventory
controls by various industry
players and the loss of as many
as a half-million cars to hurricanes in Texas and Florida.
Manheim, an auction company tracking prices, said the
average used vehicle wholesaled
for $13,599 in October, representing a record transaction
price that is 8.1% higher than
the same month a year ago. That
price is adjusted for seasonal
factors and partially reflects increased demand for pricier pickups and SUVs, while prices for
passenger cars have declined.
Black Book, a used-car
tracking publication owned by
Hearst Business Media Corp.,
said used-vehicle depreciation
has worsened because more
cars are hitting the market,
but the impact on prices
hasn’t been as bad as expected. Black Book vehicle depreciation has grown 1.5% in
2017, far behind the 6% rate
initially forecast.
Auto makers watch these
numbers so they can set resale
values for leases that now represent about a third of newcar sales. Used prices also help
determine the level of discounts or rebates needed to
persuade a person to choose a
new car over used.
Ford Motor Co. late last
year warned falling used-car
prices would shave $300 million from full-year operating
profit but backed off the
Holding Up
Used-vehicle prices are rising as
demand for trucks and SUVs
soars and vendors curb
inventory.
Percentage change in used-auto
prices since Jan. 15, 2015:
$13,599
8%
6
4
2
0
$12,505
–2
2015
2016
2017
Note: seasonally adjusted
Source: Manheim
THE WALL STREET JOURNAL.
LAURA BUCKMAN/BLOOMBERG NEWS
This year’s trend
heartens auto makers,
dealers that were
bracing for a collapse
Tighter inventory controls and demand from buyers replacing storm-damaged cars were key factors.
gloomy outlook last month.
“We’re not seeing the decline
to be as precipitous as we
thought” on used vehicles, Ford
Motor finance chief Bob Shanks
said on a conference call last
month. That “should make it a
bit easier for us to do better in
terms of new vehicle prices.”
Demand from buyers replacing hundreds of thousands
of storm-damaged vehicles in
the wake of Hurricanes Harvey
and Irma in September helped
boost used-car values. Barclays analyst Brian Johnson
said in a research note in early
November that it won’t last:
“We expect used car pricing…to turn negative in the
coming months as hurricane
benefits dissipate.”
Others say concerns about
replacement demand drying up
are assuaged by the longer-term
Sedans, Compacts
Are Potential Deals
Used-vehicle prices haven’t
dropped this year as many experts predicted, but there still are
deals to be had. Shoppers can
take advantage of depressed
prices on sedans of all sizes, which
have fallen out of favor over the
past few years as consumers
opt for SUVs and pickup trucks.
Prices on compact cars like
the Ford Focus and Toyota Corolla
are about 7% lower than they
were two years ago on average,
according to auto-auction firm
Manheim. Used prices on midsize
cars, such as the Honda Accord
and Chevrolet Malibu, have fallen
about the same amount.
“Used buyers looking for
value for their money are finding it in compact and midsized
cars,” said Anil Goyal, a senior
vice president at Manheim.
Buyers of used luxury cars
can get in on the action, too.
Prices on luxury sedans, such
as the BMW 3 Series and Audi
A6, were down about 12% in
October compared with their
average two years earlier, according to Manheim.
Sport-utility and truck buyers trolling the preowned lot
won’t be so lucky.
Average prices on SUVs have
held steady, Manheim said. Average prices on the Ford F-150,
Toyota Tundra and other large
pickup trucks are higher than
they were a year ago.
trend, with price increases being reported in nine of the 10
months of 2017, according to
Manheim. This year’s gains
more than reverse declines reported over the course of 2016.
Inventory-management
strategies are driving the longer-term trend. Dealers and
rental-car agencies, which sell
a substantial portion of the 40
million used cars exchanging
hands annually in the U.S., are
often relying less on industry
auctions to unload gently used
cars. Instead, they are reselling
them through strategic marketing efforts, such as “certified
preowned” vehicles on a dealership lot or a rental-car company’s own retail network.
BUFFALO WILD WINGS
TYSON FOODS
Roark Capital Bids
$2.3 Billion for Firm
Demand for Beef
Drives Up Results
Buffalo Wild Wings Inc. has
received a takeover bid valued at
more than $2.3 billion from private-equity firm Roark Capital
Group, according to people familiar with the matter.
Roark made an offer of more
than $150 a share in recent
weeks, one of the people said.
Buffalo Wild Wings shares closed
Monday at $117.25, giving it a
market value of $1.84 billion. The
stock jumped 28% to $150 after
hours following The Wall Street
Journal’s report of the bid.
Investment bankers at Barclays PLC are working with
Roark, while Goldman Sachs
Group Inc. is advising Buffalo
Wild Wings, the people said.
Minneapolis-based Buffalo
Wild Wings has been hurt by
rising chicken prices and slump-
Strong domestic and foreign
demand for beef drove revenue
and profit growth at Tyson
Foods Inc.
Tyson, the largest U.S. meat
company by sales, said the pork
market also helped results as a
price increase offset a volume
decline in the company’s fourth
quarter.
Tyson said it now expects
sales to increase 7% in its fiscal
2018, which began in October, to
about $41 billion, helped by a recent acquisition and higher
chicken prices. That mark is
higher than the $40.4 billion analysts polled by Thomson Reuters had expected.
The operating margin for beef
products—Tyson’s largest segment by revenue—doubled in the
fourth quarter as higher prices
and sales volume offset increases in live cattle supplies. A
decline in feed costs also helped
as grain remained cheap.
Tyson has been working to
invest the profits driven by its
beef and pork operations to
make changes. Tyson has cut
costs at its chicken and prepared-foods segments, resulting
in $150 million in total restructuring costs in the quarter.
For the fourth quarter, Tyson
reported a profit of $394 million,
or $1.07 a share, up from $391
million, or $1.03, a year earlier.
The number of shares outstanding fell 3.2%, boosting per-share
earnings. Excluding items such
as the purchase of AdvancePierre Foods and restructuring
charges, earnings rose to $1.43 a
share. Revenue rose 11% to
$10.15 billion. Analysts polled by
Thomson Reuters had forecast
earnings of $1.38 a share on
$9.89 billion in revenue.
—Austen Hufford
40M
Number of used cars changing
hands annually in the U.S.
can force auto companies to
offer customers richer incentives or extend deeper discounts on new cars, resulting
in lower margins on fresh
models rolling out of factories.
But the predicted price collapse hasn’t happened, and
now there is optimism that
the swell of vehicles that will
hit the used market may not
be as problematic for new-car
sales as initially feared.
The number of lease returns is expected to reach 11.3
LUCAS JACKSON/REUTERS
BUSINESS WATCH
A Buffalo Wild Wings in New York. The chain’s stock jumped sharply after hours on news of a bid.
ing traffic in its restaurants and
had been under attack from
Marcato Capital Management
LP. The activist investor had
pushed the company to fran-
chise more stores, boost profit
margins, increase sales and replace its chief executive.
In June, Buffalo Wild Wings
shareholders voted in Marcato’s
Dividend Changes
Pain relief
Dividend announcements from November 13.
Company
Symbol
Yld %
Amount
New/Old
Frq
founder and two of its nominees
to the board. Chief Executive
Sally Smith announced she
would retire by year-end.
—Dana Mattioli
Payable /
Record
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United Bankshares WV
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3.9
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18.7
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18.5
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5.6
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THE WALL STREET JOURNAL.
B6 | Tuesday, November 14, 2017
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
23439.70 s 17.49, or 0.07%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.18 20.61
P/E estimate *
19.22 17.66
Dividend yield
2.21
2.48
All-time high 23563.36, 11/08/17
Nasdaq Composite Index
Last
2584.84 s 2.54, or 0.10%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.42 23.99
P/E estimate *
19.37 18.05
Dividend yield
1.92
2.17
All-time high: 2594.38, 11/08/17
Last Year ago
6757.60 s 6.66, or 0.10%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.13
23.37
P/E estimate *
21.32
18.87
Dividend yield
1.04
1.24
All-time high: 6789.12, 11/08/17
Current divisor 0.14523396877348
23500
2580
6750
23000
2550
6650
22500
2520
6550
22000
2490
6450
21500
2460
6350
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
65-day moving average
65-day moving average
65-day moving average
6250
2430
21000
Bars measure the point change from session's open
Sept.
Oct.
6150
2400
20500
Aug.
Aug.
Nov.
Sept.
Oct.
Aug.
Nov.
Sept.
Oct.
Nov.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
Volume, Advancers, Decliners
17.49
0.07
23563.36 18867.93
24.2
18.6
9.9
9522.34
9458.82
9518.84
17.48
0.18
10038.13
8749.08
8.6
5.3
1.6
Most-active issues in late trading
766.55
757.62
765.39
8.44
765.39
625.44
22.4
16.0
9.2
26755.56 26616.51 26727.72
680.50
675.35
679.94
23.64
1.00
0.09
26830.60 22488.92
691.56
573.56
18.8
18.5
14.8
13.0
8.0
8.0
6.66
7.11
0.10
29.5
34.3
25.5
29.9
13.0
14.4
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
23461.68 23343.34 23439.70
Transportation Avg
Utility Average
Total Stock Market
Barron's 400
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
High
Industrial Average
Late Trading
Nasdaq Stock Market
Nasdaq Composite
6766.30
Nasdaq 100
6325.18
Standard & Poor's
500 Index
6723.43
6285.97
2587.66
6757.60
6316.18
2574.48
2584.84
2.54
MidCap 400
SmallCap 600
1830.28
896.30
1816.89
889.42
1828.93
895.04
3.18
1.27
Other Indexes
Russell 2000
1476.68
1466.09
1475.07
-0.21
1.12
0.15
0.11
6789.12
6345.81
0.10
2594.38
0.17
1843.36
918.72
1512.09
0.14
5218.40
4702.04
2164.20
19.4
15.5
1588.12
793.04
15.2
12.9
10.1
6.8
8.5
9.6
1298.60
13.6
8.7
7.9
8.2
Company
Last
Net chg
Synergy Pharmaceuticals SGYP 17,692.3
2.40
SPY
SPDR S&P 500
7,533.7 258.05
PFE
Pfizer
5,705.2 35.35
After Hours
% chg
High
Low
-0.04
-1.64
2.90
-0.28
-0.11 258.35 257.55
2.40
0.05
0.14
36.14
35.26
Verizon Communications VZ
3,585.6
44.75
…
unch.
49.05
44.68
iShares MSCI Emg Markets EEM
2,650.3
46.21
0.02
0.04
46.23
46.12
Ford Motor
F
2,529.1
12.16
…
unch.
12.18
12.10
Goldcorp
GG
2,428.8
13.26
…
unch.
13.33
13.26
Flex Ltd
FLEX
2,411.4
18.27
…
unch.
18.37
18.27
Percentage gainers…
BWLD
609.0 150.20
32.95
28.10 153.00 117.25
Regeneron Pharmaceuticals REGN
233.6 469.56
75.94
19.29 469.56 393.46
Merck
MRK
604.4
64.33
9.23
16.75
64.33
54.99
Johnson Controls Intl
JCI
255.5
41.86
5.86
16.28
41.86
36.00
146.6
3.25
0.45
16.07
4.45
2.85
Buffalo Wild Wings
-0.01
Volume
(000)
Symbol
NYSE NYSE Amer.
-5.78
-0.05
15.3
11.4
4.3
537.99
535.50
537.20
-0.79
-0.15
545.98
490.08
9.6
6.1
2.7
NYSE Arca Biotech
4115.04
4075.48
4082.93
-5.13
-0.13
4304.77
3075.02
17.9
32.8
7.0
NYSE Arca Pharma
-0.07
560.52
463.78
9.1
10.6
-0.2
...And losers
102.31
83.90
15.1
7.0
10.5
Cabot Oil Gas
COG
80.8
24.35
-4.71
-16.22
29.11
24.35
96.72
73.03
2.0
2.0
6.4
RSP Permian
RSPP
82.5
31.65
-5.49
-14.79
37.37
31.65
192.66
117.79
-13.6
-24.8 -17.0
Myomo
MYO
10.9
5.45
-0.84
-13.35
6.25
5.25
44.1
-18.1
Devon Energy
DVN
1,276.9
34.48
-5.17
-13.03
39.87
34.48
Energen Corp
EGN
24.6
49.15
-6.98
-12.43
56.52
49.15
NYSE Composite
12328.16 12272.21 12316.82
Value Line
533.55
529.97
532.72
-0.38
KBW Bank
98.37
96.79
0.64
PHLX§ Gold/Silver
98.24
81.02
80.28
-0.19
PHLX§ Oil Service
80.42
140.12
137.87
138.12
1308.13
12.18
1296.42
11.00
1306.58
11.50
PHLX§ Semiconductor
CBOE Volatility
12430.52 10679.77
0.66
-0.23
-2.85 -2.02
0.27
3.52
0.21
1.86
Philadelphia Stock Exchange
Region/Country Index
Close
26.9
-5.9
Percentage Gainers...
Latest
% chg
Net chg
2950.73
383.83
257.75
The Global Dow
DJ Global Index
DJ Global ex U.S.
–12.66
–1.06
–1.67
386.13
388.70
4007.57
5341.63
13074.42
1418.48
22437.64
545.43
1148.79
10049.90
578.93
9162.74
7415.18
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
6021.80
Shanghai Composite 3447.84
Hang Seng
29182.18
S&P BSE Sensex
33033.56
Nikkei Stock Avg
22380.99
Straits Times
3419.13
Kospi
2530.35
Weighted
10683.92
YTD
% chg
16.6
17.7
20.5
–0.43
–0.27
–0.64
0.05
0.29
0.43
309.53
–0.08
–13.00
–0.05
–25.87
–43.76 –1.07
DJ Americas
620.91
Sao Paulo Bovespa 72475.17
S&P/TSX Comp
16026.26
S&P/BMV IPC
48002.43
Santiago IPSA
4047.83
Americas
Brazil
Canada
Mexico
Chile
832.08 57.0
9.14 -20.6
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
1321.13
16.04
TRACON Pharmaceuticals TCON
–2.56
–2.20
–18.69
–39.09
–53.05
–1.36
–123.15
–1.89
–7.95
–42.80
–3.15
28.58
–17.81
–0.66
–0.56
–0.46
–0.73
–0.40
–0.10
–0.55
–0.35
–0.69
–0.42
–0.54
0.31
–0.24
–0.13
–7.60
0.44
15.16
0.21
61.26
–281.00 –0.84
–300.43 –1.32
–0.03
–0.97
–12.60 –0.50
–48.75 –0.45
14.9
20.3
4.8
5.2
25.6
6.8
11.0
11.1
9.9
13.9
–3.6
16.7
12.9
–0.3
7.5
8.3
11.5
3.8
6.3
11.1
32.6
24.1
17.1
18.7
24.9
15.5
Company
Symbol
Roku Cl A
Zymeworks
Mattel Inc
Helios Matheson Analy
Birks Group
ROKU
Yulong Eco-Materials
Ever-Glory Intl Group
GTx
Nektar Therapeutics
Nature's Sunshine
YECO
Asure Software
Galmed Pharmaceuticals
Ophthotech
Capricor Therapeutics
Secoo Holding ADR
ASUR
MAT
HMNY
BGI
EVK
GTXI
NKTR
NATR
GLMD
OPHT
CAPR
SECO
High
52-Week
Low
% chg
Symbol
General Electric
Argos Therapeutics
Bank of America
Advanced Micro Devices
Roku Cl A
GE
Finl Select Sector SPDR
iShares MSCI Emg Markets
Mattel Inc
JD.com ADR
SPDR S&P 500
XLF
28.45
24.75
20.66
20.06
19.03
47.49 15.75
14.25 6.25
32.48 12.71
38.86 2.20
2.69 1.00
...
...
-44.9
111.9
87.7
Calithera Biosciences
Diana Containerships
Ideal Power
TDH Holdings
Immunomedics
CALA
3.59
2.50
11.81
37.10
12.90
0.53
0.35
1.51
4.60
1.55
17.32
16.28
14.66
14.15
13.66
9.60 0.50
3.00 1.95
12.96 2.73
41.34 11.41
15.35 8.40
-59.0
8.7
45.8
157.5
-10.7
KBS Fashion Group
Determine
Syndax Pharmaceuticals
Fluidigm
Quantum Corp
KBSF
13.24
7.60
3.20
2.75
8.90
1.52
0.82
0.34
0.28
0.88
12.97
12.09
11.89
11.34
10.97
17.27
9.59
40.34
4.25
12.70
75.8
108.8
-91.1
-11.6
...
China TechFaith ADR
Celyad ADR
Endocyte
Infinity Pharmaceuticals
Aptevo Therapeutics
CNTF
7.38
3.04
2.24
0.63
6.61
Volume % chg from Latest Session
(000) 65-day avg Close % chg
337.8
1802.5
-15.1
-8.8
538.0
50,062
49,589
48,507
43,169
42,588
-3.4
3.3
370.3
179.8
-33.6
JD
SPY
19.02
0.22
26.40
11.09
42.71
-7.17
24.27
-0.41
-1.51
28.45
New car loan
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
26.12 0.15
46.19 -0.22
17.64 20.66
41.34 3.45
258.33 0.09
26.93 21.79
46.87 33.94
32.48 12.71
48.99 23.38
259.35 215.72
4.00%
t
Prime rate
3.50
3.00
t
2.50
2.00
D J F MAM J J A S O N
2017
1.89%
800-288-3425
TrustCo Bank
Orlando, FL
2.37%
407-422-7129
Lake City Bank
Warsaw, IN
2.49%
888-522-2265
Broadway National Bank
San Antonio, TX
2.50%
210-283-6500
Cambridge Savings Bank
2.59%
Cambridge, MA
888-418-5626
Monday
One year ago
t
New car loan
Think Mutual Bank
Rochester, MN
3.00
1
3 6
month(s)
1 2 3 5 710
years
maturity
2.25
0
1.50
–5
0.75
–10
0.00
–15
s
WSJ Dollar index
30
Euro
s Yen
Interest rate
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.40
1.42
Money market, annual yield
0.33
0.32
Five-year CD, annual yield
1.47
1.49
30-year mortgage, fixed†
3.90
3.92
15-year mortgage, fixed†
3.23
3.30
Jumbo mortgages, $424,100-plus† 4.29
4.28
Five-year adj mortgage (ARM)† 3.51
3.45
New-car loan, 48-month
3.01
3.01
HELOC, $30,000
5.03
4.47
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.91 l
0.26 l
1.19 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
l
4.47
1.25
4.25
1.42
0.36
1.49
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.18
-0.11
-0.06
-0.14
0.06
...
-0.13
-0.23
0.11
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
Corporate Borrowing Rates and Yields
Bond total return index
Close
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1456.180
2.186
2.102
2.237
1.818
1.410 1.929
10-yr Treasury, Ryan ALM 1725.677
DJ Corporate
376.787
Aggregate, Barclays Capital 1934.940
High Yield 100, Merrill Lynch
n.a.
Fixed-Rate MBS, Barclays 1983.260
Muni Master, Merrill
n.a.
2.400
3.173
2.680
n.a.
2.910
n.a.
2.318
3.063
2.580
5.213
2.820
1.962
2.609
3.390
2.790
n.a.
3.120
n.a.
2.058
2.879
2.380
n.a.
2.650
n.a.
0.686
4.305
2.019
n.a.
1.161
n.a.
796.274
5.645
5.547
6.290
5.279
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
WSJ
.COM
4.96
1.87
8.50
4.46
4.28
-1.19
-0.36
-1.61
-0.78
-0.72
-19.35
-16.14
-15.92
-14.89
-14.40
18.00
3.93
15.70
8.69
9.20
1.41
1.58
6.31
2.52
4.22
-13.0
-6.5
-15.8
-26.4
-36.5
2.30
45.97
4.60
2.09
2.64
-0.38
-7.52
-0.73
-0.32
-0.38
-14.18
-14.05
-13.70
-13.28
-12.58
3.60 1.45
64.75 16.73
6.55 1.17
3.84 0.93
3.85 1.15
7.0
149.8
55.9
57.1
14.3
QTM
INFI
APVO
Ranked by change from 65-day average*
Symbol
Kayne Anderson Acqn Cl A
Vantage Energy Acqn Cl A
FT ETF EqCompass Tactical
WisdomTree US Total Earn
Joint
Country/currency
KAAC
VEAC
TERM
EXT
JYNT
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
247
310
468
505
17,376
3426
3151
1872
1754
1247
30.84
8.57
50.67
18.24
37.10
-0.09
24.75
0.06
-1.19
14.15
31.21
14.25
52.92
20.26
41.34
676
797
91
63
204
1078
1077
959
869
781
9.70
9.70
21.26
30.60
5.90
-0.10
-0.41
0.24
-0.08
7.08
9.79 9.68
9.95 9.68
21.43 19.67
30.74 25.41
5.99 1.96
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Americas
Argentina peso
.0572 17.4950
Brazil real
.3049 3.2794
Canada dollar
.7853 1.2734
Chile peso
.001589 629.30
Colombia peso
.0003324 3008.00
Ecuador US dollar
1
1
Mexico peso
.0523 19.1284
Peru new sol
.3084 3.243
Uruguay peso
.03425 29.2000
Venezuela b. fuerte .100150 9.9851
1.712
3.751
2.334
n.a.
2.040
n.a.
10.333 5.611
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7624 1.3116
China yuan
.1504 6.6488
Hong Kong dollar
.1282 7.8009
India rupee
.01528 65.442
Indonesia rupiah .0000738 13558
Japan yen
.008801 113.62
Kazakhstan tenge .003004 332.92
Macau pataca
.1246 8.0287
Malaysia ringgit
.2386 4.1915
New Zealand dollar
.6902 1.4489
Pakistan rupee
.00949 105.350
Philippines peso
.0195 51.192
Singapore dollar
.7343 1.3619
South Korea won .0008929 1119.89
Sri Lanka rupee
.0065087 153.64
Taiwan dollar
.03312 30.189
21.26
6.25
49.71
17.27
11.41
10.2
0.7
–5.3
–6.0
0.2
unch
–7.7
–3.3
–0.5
–0.1
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
–5.5
–4.3
0.6
–3.7
0.2
–2.9
–0.2
1.4
–6.6
0.3
0.9
3.2
–5.9
–7.3
3.5
–7.0
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Country/currency
.03025 33.060 –7.7
.00004404 22709 –0.3
Thailand baht
Vietnam dong
Europe
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
.04563 21.914 –14.7
.1568 6.3772 –9.8
1.1669 .8570 –9.8
.003742 267.24 –9.2
.009645 103.68 –8.2
.1225 8.1656 –5.5
.2753 3.6321 –13.3
.01684 59.397 –3.1
.1193 8.3831 –7.9
1.0036 .9964 –2.2
.2584 3.8706 9.9
.0378 26.4873 –2.2
1.3115 .7625 –5.9
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6452 .3780 0.2
.0567 17.6295 –2.8
.2822 3.5433 –7.9
3.3058 .3025 –1.0
2.5974 .3850 0.01
.2611 3.830 5.2
.2667 3.7502 –0.01
.0691 14.4764 5.7
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.73
0.15 0.17 –5.61
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
COMMODITIES
Monday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
272.2
-99.9
-65.3
...
270.4
Asia-Pacific
2017
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
2.90
1.56
1.45
6.02
2.51
U.S.-dollar foreign-exchange rates in late New York trading
10%
5
20.05
-28.72
-28.40 1131015.06
4.98
-23.53
31.75
-21.30
14.48
-19.35
Currencies
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.75%
3.01%
-4.73
-3.09
-0.48
-4.30
-2.40
FLDM
ECYT
52-Week
Low
% chg
11.73
7.79
1.56
15.89
10.00
SNDX
CYAD
High
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Forex Race
notes and bonds
Bankrate.com avg†:
NYSE Arca
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
Latest Session
Close Net chg % chg
DTRM
WisdomTree Emg Mkts xSOEXSOE
ZYME
Zymeworks
FIXD
First Tr TCW Opportun
SOYB
Teucrium Soybean Fund
NKTR
Nektar Therapeutics
18.75
0.13
19.40
6.61
15.75
* Volumes of 100,000 shares or more are rounded to the nearest thousand
t
A consumer rate against its
benchmark over the past year
IMMU
32.38
5.68
27.98
15.65
47.49
s
Selected rates
PETZ
Company
CREDIT MARKETS & CURRENCIES
U.S. consumer rates
IPWR
52-Week
High
Low
Sources: SIX Financial Information; WSJ Market Data Group
Consumer Rates and Returns to Investor
DCIX
Volume Movers
253,928
67,332
BAC
54,741
AMD
53,153
ROKU
52,758
MAT
Symbol
9.46
1.70
3.02
2.06
0.43
ARGS
EEM
Company
42.71
8.57
17.64
12.33
2.69
Most Active Stocks
Company
Nasdaq
Total volume*1,937,948,998 188,203,197
Adv. volume*1,049,800,710 89,473,060
Decl. volume* 859,122,991 97,731,889
Issues traded
3,080
1,315
Advances
1,456
579
Declines
1,487
698
Unchanged
137
38
New highs
74
52
New lows
85
30
Closing tick
226
35
Closing Arms†
0.80
0.91
Block trades*
7,740
1,038
Percentage Losers
Latest Session
Close Net chg % chg
ZYME
Total volume* 790,713,240 13,641,994
Adv. volume* 331,023,433 5,310,552
Decl. volume* 442,918,108 7,896,580
Issues traded
3,078
328
Advances
1,325
129
Declines
1,638
173
Unchanged
115
26
New highs
100
4
New lows
102
11
Closing tick
51
20
Closing Arms†
1.18
0.77
Block trades*
6,404
114
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
616.58
0.64
191.45
56.76
3.167
1277.30
-0.20
0.02
-0.046
4.90
0.10
616.58
532.01
-0.10 195.14
57.35
0.04
3.93
-1.43
0.39 1346.00
166.50
42.53
2.56
1127.80
% Chg
15.79
YTD
% chg
8.70
6.21 -0.55
5.66
31.02
15.21 -14.96
4.59 11.07
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | B7
COMMODITIES
Futures Contracts
Open
Contract
High hilo
Low
Settle
Open
interest
Chg
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.0860
3.1260
3.0860
3.1115 0.0420
Nov
Dec
3.0750
3.1365
3.0680
3.1165 0.0405
Gold (CMX)-100 troy oz.; $ per troy oz.
Nov
1277.00 1277.00
1277.00 1277.30
4.90
Dec
1275.30 1279.90
1274.40 1278.90
4.70
Feb'18
1279.20 1284.20
1278.90 1283.30
4.80
April
1283.00 1288.20
1283.00 1287.60
4.80
June
1289.60 1292.70
1288.70 1291.90
4.80
Dec
1301.50 1305.40
1301.50 1304.90
5.00
Palladium (NYM) - 50 troy oz.; $ per troy oz.
993.15 1001.45
986.95
989.70 –3.40
Dec
March'18 990.65 993.75
982.00
984.05 –2.85
Platinum (NYM)-50 troy oz.; $ per troy oz.
928.30
928.70
928.30
932.40
3.50
Nov
Jan'18
930.70
938.40
927.00
935.60
3.50
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.840
17.010
16.840
17.023 0.179
Nov
Dec
16.860
17.070
16.820
17.047 0.176
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
56.90
57.15
56.30
56.76
0.02
Dec
Jan'18
57.16
57.37
56.52
56.97 –0.01
Feb
57.34
57.52
56.70
57.13 –0.03
March
57.48
57.65
56.85
57.27 –0.01
June
57.30
57.50
56.79
57.18
0.05
Dec
55.62
55.79
55.31
55.60
0.15
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.9361
1.9441
1.9209
1.9321 –.0028
Dec
Jan'18
1.9380
1.9469
1.9242
1.9353 –.0024
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.8284
1.8326
1.7854
1.7929 –.0195
Dec
Jan'18
1.8110
1.8122
1.7744
1.7832 –.0129
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
3.200
3.231
3.127
3.167 –.046
Dec
Jan'18
3.291
3.321
3.225
3.262 –.044
Feb
3.298
3.320
3.229
3.265 –.043
March
3.257
3.269
3.188
3.222 –.040
April
2.976
3.000
2.956
2.974 –.013
May
2.955
2.971
2.928
2.950 –.011
Open
interest
557
122,044
71
300,989
157,003
20,174
19,596
11,104
28,621
7,144
4
70,271
3
114,696
364,546
517,089
176,319
271,356
227,770
268,008
96,913
109,537
107,071
144,619
146,838
277,692
97,210
181,128
122,276
91,013
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
Dec
343.50
344.00
341.50
342.25
March'18 356.00 356.75
354.25
355.00
Oats (CBT)-5,000 bu.; cents per bu.
Dec
273.00
275.50
272.00
273.50
March'18 281.00 283.75
278.25
283.00
Soybeans (CBT)-5,000 bu.; cents per bu.
Nov
977.25
978.00
963.25
963.50
Jan'18
987.00
990.25
973.75
974.25
Soybean Meal (CBT)-100 tons; $ per ton.
Dec
314.50
316.50
311.10
311.30
Jan'18
316.80
318.50
313.30
313.40
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Dec
34.82
34.83
34.28
34.33
Jan'18
34.96
34.97
34.43
34.48
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Nov
1112.00 1115.00
1112.00 1112.00
Jan'18
1144.50 1147.50
1131.00 1136.00
Wheat (CBT)-5,000 bu.; cents per bu.
Dec
432.00
432.00
422.25
424.25
March'18 449.00 449.00
440.25
443.25
Wheat (KC)-5,000 bu.; cents per bu.
Dec
433.00
433.00
423.75
427.50
March'18 449.75 450.00
439.75
444.25
Wheat (MPLS)-5,000 bu.; cents per bu.
Dec
646.25
646.50
630.00
633.25
March'18 657.00 657.75
642.50
647.00
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Nov
158.175 159.375
157.550 158.700
Jan'18
156.475 157.550
155.375 156.975
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Dec
120.000 121.725
119.450 120.575
Feb'18
126.000 127.675
125.225 126.400
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Dec
62.575
62.925
61.925
62.300
Feb'18
70.250
70.675
69.900
70.300
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Nov
470.90
472.40 s
466.60
467.40
Jan'18
460.80
461.60
451.70
456.30
Nov
Dec
–1.25 603,364
–1.75 517,930
1.50
3.00
3,934
3,513
–13.75
1,088
–12.75 322,252
–3.20 91,804
–3.20 106,565
–.48 118,315
–.48 124,702
–4.50
–6.00
17
9,548
–7.25 183,686
–5.75 199,423
–5.75 102,729
–5.75 128,701
–14.25
–12.25
31,737
29,107
.225
–.200
5,260
29,285
… 81,209
–.350 139,401
–.175
.050
64,245
86,356
–3.60
–3.30
219
5,556
Cash Prices | WSJ.com/commodities
Monday, November 13, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Monday
Monday
16.9250
12869
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
0.9870
1.0692
3.120
3.070
3.240
2.760
2.880
2.500
3.020
59.850
12.100
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Other metals
LBMA Platinum Price PM
*937.0
Platinum,Engelhard industrial
936.0
Platinum,Engelhard fabricated
1036.0
Palladium,Engelhard industrial
997.0
Palladium,Engelhard fabricated
1097.0
Aluminum, LME, $ per metric ton
*2090.0
Copper,Comex spot
3.1115
Iron Ore, 62% Fe CFR China-s
61.9
Shredded Scrap, US Midwest-s,w
276
Steel, HRC USA, FOB Midwest Mill-s
610
Fibers and Textiles
Metals
Gold, per troy oz
1281.82
1377.96
1277.95
1418.53
*1284.45
*1284.30
1330.06
1342.85
1342.85
1549.97
1256.58
1342.85
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
17.0000
20.4000
17.0100
21.2630
£12.9300
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
0.6150
0.6813
*79.35
65.500
n.a.
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
n.a.
86
n.a.
91.0
492.9
225
88
220
3.0600
368.00
24.00
7.5838
Monday
307.30
n.a.
7.7075
4.3500
3.8500
5.2763
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
192.93
175.51
0.8612
2.2500
170.00
171.25
73.50
n.a.
1.2642
1.4513
1.2750
15.60
0.82
65.57
1.2826
0.8947
n.a.
172.13
Fats and Oils
34.8500
0.2500
n.a.
0.3346
0.2700
n.a.
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
as of 11/10
Source: WSJ Market Data Group
November 13, 2017
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Week
Latest ago
Inflation
Chg From (%)
Aug. '17 Sept. '16
U.S. consumer price index
246.819
252.941
All items
Core
0.53
0.19
2.2
1.7
Britain
Australia
Latest
Week
ago
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
Policy Rates
Euro zone
Switzerland
0.00
0.50
0.00
0.50
0.00
0.50
0.50
1.50
0.50
1.50
0.25
1.50
1.18
U.S.
1.21
1.38
0.00
0.50
Discount
1.75
1.75
1.75
1.00
Federal funds
Effective rate 1.1700 1.1700 1.2000
High
1.3125 1.3125 1.3125
Low
1.0500 1.0500 1.1600
Bid
1.1600 1.1600 1.1700
Offer
1.1700 1.1700 1.1900
Week
Latest ago
0.3500
0.5625
0.2500
0.3000
0.3200
—52-WEEK—
High Low
Treasury bill auction
1.035 1.020 1.300 0.270
1.240 1.185 1.240 0.480
1.360 1.300 1.360 0.590
4 weeks
13 weeks
26 weeks
0.15
U.S. government rates
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
0.50
1.50
—52-WEEK—
High Low
Overnight repurchase
International rates
Secondary market
1.16
0.40
1.16
1.20
1.26
1.14
1.19
1.23
1.16
1.20
1.26
0.41
0.52
0.58
1.19
1.24
1.30
1.17
1.21
1.26
1.19
1.24
1.30
0.46
0.57
0.66
Commercial paper
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
Discount window primary credit
1.75
1.75
1.75
1.00
n.a.
n.a.
Conventional mortgages
n.a.
n.a.
Treasury yields at constant
maturities
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
1.05
1.22
1.34
1.52
1.64
1.76
2.01
2.20
2.34
2.59
1.01
1.16
1.28
1.45
1.61
1.73
2.00
2.21
2.36
2.63
52-Week
High
Low
Treasury yields (secondary market)
1.15
1.07
1.22
1.34
1.52
1.64
1.76
2.08
2.37
2.55
2.91
0.29
0.44
0.56
0.70
0.88
1.08
1.42
1.75
1.98
2.41
1-month
3-month
6-month
1.03
1.20
1.32
0.99
1.14
1.26
1.05
1.20
1.32
0.28
0.44
0.55
0.23
0.38
0.47
0.71
0.74
0.24
0.41
0.49
0.75
0.78
0.31
0.49
0.63
0.97
0.97
-0.21
-0.03
0.20
0.60
0.62
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
TIPS
5-year
7-year
10-year
20-year
Long-term avg
Interest rate swaps
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3.494 3.436 3.865 3.253
3.521 3.457 3.899 3.281
30 days
60 days
Other short-term rates
Week
Latest ago
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
State and local bonds
3.00
n.a.
One month
Three month
Six month
One year
3.00
3.00
2.25
One month
Three month
Six month
One year
0.62
1.25028
1.41586
1.61618
1.88428
1.24424
1.39703
1.59406
1.86428
1.25028
1.41586
1.61618
1.88428
0.54206
0.90622
1.27211
1.60456
-0.399
-0.378
-0.314
-0.247
-0.400
-0.378
-0.314
-0.237
-0.376
-0.325
-0.214
-0.077
-0.405
-0.381
-0.322
-0.247
-0.371
-0.329
-0.275
-0.191
One month
Three month
Six month
One year
Latest
-0.371
-0.329
-0.276
-0.191
Value
Traded
-0.366
-0.311
-0.211
-0.070
16,963
136,060
53,318
100,516
407,570
138,361
2,770
53,899
119,776
6,223
Chg
Open
interest
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Nov
Dec
.8798
.8817
.8826
.8843
.8798
.8806
.8806
.8819
.0002
2,376
.0002 276,151
Nov
Dec
.7862
.7883
.7878
.7891
.7849
.7851
.7856 –.0031
1,251
.7860 –.0030 144,080
Nov
Dec
1.3121
1.3182
1.3121
1.3185
1.3077
1.3074
1.3102 –.0095
530
1.3127 –.0082 174,115
Dec
March'18
1.0059
1.0125
1.0086
1.0158
1.0034
1.0106
1.0065
1.0137
…
.7647
.7655
.7640
.7641
.7651
.7642
.7663
.7659
.7658
.7657
.7651
.7642
.7613
.7613
.7612
.7611
.7614
.7642
.7623
.7621
.7620
.7619
.7617
Canadian Dollar (CME)-CAD 100,000; $ per CAD
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
Nov
Dec
Jan'18
Feb
March
June
t
t
Mexican Peso (CME)-MXN 500,000; $ per MXN
Dec
.05199
.05206
March'18 .05106 .05127
Euro (CME)-€125,000; $ per €
Nov
1.1659
1.1664
Dec
1.1678
1.1697
.0001
.0001
82,085
249
–.0017
1,154
–.0033 119,567
–.0033
627
–.0033
543
–.0033
947
–.0032
245
.05177
.05101
.05198 .00002 178,400
.05121 .00003
608
1.1646
1.1659
1.1671
1.1689
.0006
5,067
.0002 440,174
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
23397
23400
23429
23417
23288
23286
23406
23399
2570.50
2581.90
S&P 500 Index (CME)-$250 x index
Dec
2585.30 s
2581.40
Mini S&P 500 (CME)-$50 x index
2580.25 2585.50
2570.25 2582.00
Dec
March'18 2581.25 2585.75 s 2570.75 2582.50
Mini S&P Midcap 400 (CME)-$100 x index
1826.40 1829.40
1814.70 1828.70
Dec
Mini Nasdaq 100 (CME)-$20 x index
Dec
6312.5
6325.0 s
6281.0
6312.0
March'18 6327.8 6340.5 s
6297.8
6328.0
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1474.90 1477.70
1463.20 1473.70
March'18 1464.60 1464.60
1464.60 1474.50
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1425.70 1432.40
1425.70 1430.70
U.S. Dollar Index (ICE-US)-$1,000 x index
94.36
94.55
94.31
94.39
Dec
March'18
94.10
94.23
94.00
94.08
24 154,141
24
1,762
2.30
62,506
2.50 3,179,045
2.50 76,697
3.90
92,454
2.8 278,891
3.0
2,310
–.60
–.60
69,201
80
1.50
296
.11
.10
45,037
2,530
Source: SIX Financial Information
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
3.0 U.S. Aggregate
1934.94
Total
return
close
2.680 2.380 2.790
U.S. Corporate Indexes Bloomberg Barclays
1983.26
2.2
Mortgage-Backed
1950.60
1.6
Ginnie Mae (GNMA) 2.870 2.570 3.090
2.910 2.650 3.120
3.260 3.030 3.520
1163.07
2.3
Fannie mae (FNMA) 2.920 2.670 3.120
3.6 Intermediate
2.830 2.530 3.010
1791.00
2.4
Freddie Mac (FHLMC) 2.940 2.680 3.130
3810.17
8.4 Long term
4.210 4.100 4.710
n.a.
n.a.
Muni Master
n.a. n.a. n.a.
564.42
3.7 Double-A-rated
2.740 2.470 2.870
n.a.
n.a.
7-12 year
n.a. n.a. n.a.
3.550 3.340 3.870
n.a.
n.a.
12-22 year
n.a. n.a. n.a.
n.a.
n.a.
22-plus year
n.a. n.a. n.a.
5.0
2764.22
2612.09
U.S. Corporate
5.7
713.22
Triple-B-rated
High Yield Bonds Merrill Lynch
n.a.
n.a.
High Yield Constrained n.a. n.a. n.a.
n.a.
n.a.
Triple-C-rated
n.a. n.a. n.a.
542.86
1.1
Global Government 1.450 1.300 1.560
n.a.
n.a.
High Yield 100
n.a. n.a. n.a.
755.64
0.3
Canada
2.030 1.570 2.190
n.a.
n.a.
Global High Yield Constrained n.a. n.a. n.a.
371.34
0.6
EMU§
1.086 0.933 1.363
Europe High Yield Constrained n.a. n.a. n.a.
U.S Agency Bloomberg Barclays
710.76
0.6
France
0.840 0.710 1.210
n.a.
n.a.
Global Government J.P. Morgan†
507.97
-1.3
Germany
0.480 0.210 0.620
1636.90
2.0
U.S Agency
2.050 1.590 2.050
288.05
-0.04
Japan
0.410 0.240 0.460
1464.52
1.2
10-20 years
1.890 1.390 1.890
560.57
-1.0
Netherlands
0.610 0.360 0.760
20-plus years
2.980 2.730 3.460
915.23
U.K.
1.640 1.340 1.790
Yankee
2.900 2.610 3.090
796.27
7.0
3344.60
2448.93
4.5
0.2
7.7 Emerging Markets ** 5.645 5.279 6.290
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
1.500
2.250
Treasury
MBS
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Notes on data:
0.919
2.152
1.805 t
2.633 t
l
1.827
1.938
1.714
11.0
16.6
79.5
l
2.641
2.803
2.576
23.4
21.0
42.4
France 2 -0.574 t
l
-0.567
-0.519
l
0.782
0.668
Germany 2 -0.731 s
10 0.419 s
l
-0.749
-0.724
l
0.408
0.405
Italy 2 -0.219 s
10 1.833 t
l
-0.238
-0.125
0.080
-191.4
-184.6
-84.0
l
1.845
2.065
2.043
-56.6
-58.2
-10.9
0.100
Japan 2 -0.169 s
10 0.052 s
l
-0.174
-0.138
-0.247
-116.7
0.037
0.067
-186.5
-0.031 -234.8
-184.0
l
-236.8
-218.3
1.450
Spain 2 -0.351 t
10 1.533 t
l
-0.309
-0.275
-0.108
-204.6
-196.3
-102.7
l
1.560
1.580
1.491
-86.6
-86.1
-66.1
0.493 s
1.330 t
l
0.490
0.473
0.228
-120.2
-116.6
-69.2
l
1.341
1.373
1.252
-107.0
-113.1
-90.0
10
1.750
U.K. 2
4.250
10
0.782
-0.566 -226.9
0.757
-161.7
-222.3
-148.5
-177.4
-139.5
-0.602 -242.7
0.311 -198.0
-239.3
-152.2
-201.6
-184.1
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
AT&T
Macy's Retail Holdings
Qualcomm
Kohl's
T
M
QCOM
KSS
3.000
4.375
4.300
4.250
Feb. 15, ’22
Sept. 1, ’23
May 20, ’47
July 17, ’25
57
295
170
167
–21
–16
–12
–10
62
289
148
n.a.
34.17
…
66.49
41.18
–0.15
…
2.97
–4.32
Nucor
Philip Morris International
Banco Bilbao Vizcaya Argentaria S.A.
Old Republic International
NUE
PM
BBVASM
ORI
4.000
2.000
3.000
3.875
Aug. 1, ’23
Feb. 21, ’20
Oct. 20, ’20
Aug. 26, ’26
70
22
57
132
–10
–10
–8
–8
n.a.
n.a.
n.a.
134
55.70
103.51
...
20.87
–0.23
0.48
...
0.19
…And spreads that widened the most
BNP
ARE
PBI
TEVA
3.500 Nov. 16, ’27
3.450 April 30, ’25
3.625 Sept. 15, ’20
2.200 July 21, ’21
127
119
364
340
356
341
64
32
n.a.
n.a.
282
n.a.
...
126.61
10.02
…
...
–0.02
–3.38
…
52-Week
High
Low
Hasbro
Broadcom
Enterprise Products Operating
Xerox
HAS
AVGO
EPD
XRX
3.500 Sept. 15, ’27
3.875 Jan. 15, ’27
7.034 Jan. 15, ’68
3.625 March 15, ’23
147
180
–40
227
22
16
15
15
125
126
n.a.
200
96.83
265.01
…
28.17
5.88
0.02
…
–3.43
1.196 27.102 1.366 0.244
1.214 131.374 1.506 0.257
DTCC GCF Repo Index Futures
n.a.
1.501
2.277
Bnp Paribas S.A.
Alexandria Real Estate Equities
Pitney Bowes
Teva Pharmaceutical Finance Netherlands Iii
Open Implied
Settle Change Interest Rate
n.a.
1.662
2.404
10
0.100
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
l
Australia 2
0.000
Year ago
U.S. 2 1.695 s
10 2.399 t
2.750
0.750
Month ago
l
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
-0.375
-0.332
-0.276
-0.191
DTCC GCF Repo Index
n.a.
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates
on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window
primary credit rate is charged for discounts made and advances extended under the Federal
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday;
Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid
yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International
Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in
return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only;
Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to
maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first
mortgages
Sources: Federal Reserve; for additional information on these rate data and their derivation,
please see, www.federalreserve.gov/releases/h15/data.htm
1.32
Euro interbank offered rate (Euribor)
n.a.
Notes on data:
1.29
Euro Libor
Treasury Nov
Treasury Dec
Treasury Jan
Eurodollars
1 month
3 month
6 month
4,327
4,497
Settle
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
2.750
52-Week
high
low
Call money
Corporate bonds, Moody's seasoned
Aaa
Baa
.03
.10
Contract
High hilo
Low
Open
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
2.050
Libor
1.16
16.80
15.69
Dec
152-050 152-300
152-010 152-130
3.0 763,823
March'18 151-040 151-250
150-300 151-080
3.0 21,426
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
124-215 124-290
124-175 124-200
–2.5 3,218,633
March'18 124-120 124-190
124-080 124-105
–2.0 57,556
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
116-317 117-027
116-277 116-285
–3.5 3,124,434
Dec
March'18 116-242 116-272
116-205 116-210
–3.7 77,557
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
107-190 107-195
107-167 107-172
–1.5 1,739,250
Dec
March'18 107-140 107-145
107-120 107-122
–1.7 79,683
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
98.843
98.845
98.843
98.843
… 205,338
Nov
Jan'18
98.615
98.615
t 98.610
98.615
… 338,984
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
100.875 100.922
100.516 100.609 –.063 29,467
Dec
1 Month Libor (CME)-$3,000,000; pts of 100%
98.5300 98.5300
t 98.5300 98.5275 .0025
53
Jan
Eurodollar (CME)-$1,000,000; pts of 100%
98.5825 98.5850
98.5825 98.5825
… 102,771
Nov
Dec
98.4675 98.4725
98.4650 98.4675 .0025 1,754,370
March'18 98.3100 98.3150
98.2950 98.3000 –.0100 1,319,832
Dec
98.0400 98.0450
98.0100 98.0100 –.0300 1,655,176
0.050
Data are annualized on a 360-day basis. Treasury yields are per annum,
on actively traded noninflation and inflation-indexed issues that are
adjusted to constant maturities. Data are from weekly Federal Reserve
release H.15.
Federal funds (effective)
16.76
15.49
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
30-year mortgage yields
90 days
Week Ended
Nov 10 Nov 3
16.82
15.72
Open
interest
Interest Rate Futures
Fannie Mae
Key Interest Rates
52-Week
High
Low
16.80
15.72
Chg
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,211
2,229
2,184
2,208
–15
Dec
March'18
2,199
2,214
2,178
2,201
–11
Coffee (ICE-US)-37,500 lbs.; cents per lb.
127.50
128.15
126.65
127.60
.05
Dec
March'18 130.90 131.35
130.05
130.75
–.15
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
14.99
15.18
14.86
15.13
.17
March
May
14.97
15.12
14.87
15.04
.08
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
27.01
27.25
27.00
27.25
.07
March
Cotton (ICE-US)-50,000 lbs.; cents per lb.
69.00
69.68
68.85
68.88
–.17
Dec
March'18
69.14
69.63
68.85
68.93
–.21
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
…
… s
…
160.60 –2.00
Dec
Jan'18
162.70
169.50 s
160.45
160.60 –2.00
0.500
Commercial paper (AA financial)
Week Ended
Nov 10 Nov 3
Settle
Global Government Bonds: Mapping Yields
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Sept. index
level
Contract
High hilo
Low
Open
Milk (CME)-200,000 lbs., cents per lb.
Metal & Petroleum Futures
Energy
WSJ.com/commodities
98.830 unch. 8834 1.170
98.690 unch. 2043 1.310
98.585 unch. 450 1.415
U.S. prime rate is the base rate on corporate
loans posted by at least 70% of the 10 largest
U.S. banks, and is effective June 15, 2017. Other
prime rates aren’t directly comparable; lending
practices vary widely by location; Discount rate
is effective June 15, 2017. DTCC GCF Repo Index
is Depository Trust & Clearing Corp.'s weighted
average for overnight trades in applicable
CUSIPs. Value traded is in billions of U.S. dollars.
Federal-funds rates are Tullett Prebon rates as
of 5:30 p.m. ET. Futures on the DTCC GCF Repo
Index are traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor
Statistics; DTCC; SIX Financial Information;
General Electric Capital Corp.; Tullett Prebon
Information, Ltd.
High-yield issues with the biggest price increases…
Coupon (%)
Maturity
Issuer
Symbol
Mattel
Teamhealth Holdings
CenturyLink
Embarq
MAT
TMH
CTL
EQ
6.200
Oct. 1, ’40
6.375
Feb. 1, ’25
7.600 Sept. 15, ’39
7.995
June 1, ’36
Intelsat Luxembourg S.A.
Mallinckrodt International Finance
Nabors Industries
Chs/Community Health Systems
INTEL
MNK
NBR
CYH
7.750
4.750
5.500
8.000
June 1, ’21
April 15, ’23
Jan. 15, ’23
Nov. 15, ’19
Bond Price as % of face value
Current
One-day change
102.750
88.250
82.031
93.750
64.000
81.470
99.474
92.281
5.75
3.75
3.03
3.00
3.00
2.97
2.72
2.03
Last week
Stock Performance
Close ($)
% chg
n.a.
85.500
87.625
100.500
17.64
...
15.33
...
20.66
...
–0.97
...
63.125
85.000
96.500
92.368
...
…
6.12
…
...
…
–4.38
…
105.250
95.500
82.500
58.750
28.80
...
6.96
...
0.52
...
2.81
...
57.875
108.438
104.250
101.750
...
...
17.44
29.23
...
...
–0.06
0.55
…And with the biggest price decreases
Eldorado Resorts
Exela Intermediate
Frontier Communications
EP Energy
ERI
6.000
EXLINT 10.000
FTR
8.750
EPENEG
6.375
April 1, ’25
July 15, ’23
April 15, ’22
June 15, ’23
101.250
91.563
73.000
56.000
Murray Energy
Altice Luxembourg S.A.
American Axle And Manufacturing
Goodyear Tire & Rubber
MURREN 11.250 April 15, ’21
ATCNA
7.625 Feb. 15, ’25
AXL
6.500
April 1, ’27
GT
4.875 March 15, ’27
53.000
101.588
101.375
100.688
–4.75
–3.44
–3.00
–2.50
–2.25
–2.16
–1.63
–1.62
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
B8 | Tuesday, November 14, 2017
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE MKT and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq OMX
BXSM (formerly Boston), Chicago Stock
Exchange, CBOE, National Stock Exchange, ISE
and BATS.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Monday, November 13, 2017
Stock
Net
Sym Close Chg
NYSE
ABB
ABB 25.48
AECOM
ACM 35.63
AES
AES 10.82
Aflac
AFL 84.40
AT&T
T
34.17
AbbottLabs ABT 55.30
AbbVie
ABBV 95.12
Accenture ACN 143.92
AcuityBrands AYI 163.53
Adient
ADNT 76.22
AdvanceAuto AAP 82.28
AdvSemiEngg ASX 6.15
Aegon
AEG 5.96
AerCap
AER 50.61
Aetna
AET 173.02
AffiliatedMgrs AMG 182.86
AgilentTechs A
67.13
AgnicoEagle AEM 45.07
Agrium
AGU 106.63
s AirProducts APD 162.76
AlaskaAir ALK 61.72
Albemarle ALB 143.37
Alcoa
AA 43.13
s AlexandriaRlEst ARE 126.61
Alibaba
BABA 184.54
Alleghany Y
576.37
Allegion
ALLE 83.94
t Allergan
AGN 174.41
AllianceData ADS 224.20
AlliantEnergy LNT 44.30
AllisonTransm ALSN 42.27
Allstate
ALL 99.44
AllyFinancial ALLY 25.65
AlticeUSA ATUS 21.10
Altria
MO 65.84
AlumofChina ACH 18.03
Ambev
ABEV 6.12
s Ameren
AEE 63.39
AmericaMovil AMX 17.20
AmericaMovil A AMOV 17.13
AmCampus ACC 42.72
s AEP
AEP 76.13
AmerExpress AXP 93.90
s AmericanFin AFG 106.03
AmerHomes4Rent AMH 22.12
AIG
AIG 62.00
AmerTowerREIT AMT 150.04
AmerWaterWorks AWK 89.52
Ameriprise AMP 157.32
AmerisourceBrgn ABC 75.40
Ametek
AME 68.89
s Amphenol APH 88.48
AnadarkoPetrol APC 50.23
Andeavor ANDV 106.15
AB InBev BUD 117.77
AnnalyCap NLY 11.38
AnteroResources AR 19.89
Anthem
ANTM 218.46
Aon
AON 141.89
Apache
APA 43.49
ApartmtInv AIV 45.47
ApolloGlblMgmt APO 29.19
AquaAmerica WTR 36.44
Aramark
ARMK 42.85
ArcelorMittal MT 29.02
ArcherDaniels ADM 39.74
Arconic
ARNC 23.79
s AristaNetworks ANET 225.15
ArrowElec ARW 78.07
AstraZeneca AZN 32.91
Athene
ATH 48.39
AtmosEnergy ATO 89.54
Autohome ATHM 61.19
Autoliv
ALV 123.25
AutoZone AZO 595.26
Avalonbay AVB 188.11
Avangrid
AGR 51.21
AveryDennison AVY 107.94
AxaltaCoating AXTA 31.92
BB&T
BBT 46.49
s BCE
BCE 48.10
BHPBilliton BHP 42.70
BHPBilliton BBL 37.37
BP
BP 39.88
BRF
BRFS 12.69
t BT Group BT 16.23
BWX Tech BWXT 60.58
BakerHughes BHGE 31.88
Ball
BLL 40.31
BancoBilbaoViz BBVA 8.33
BancodeChile BCH 89.09
BancoMacro BMA 113.97
BcoSantChile BSAC 30.10
BancoSantander SAN 6.42
BanColombia CIB 37.34
BankofAmerica BAC 26.40
0.12
0.04
0.59
0.96
-0.05
0.50
-0.31
0.03
3.35
-1.20
1.06
...
-0.11
-1.06
-2.10
-1.50
0.32
0.07
-0.24
2.46
-0.70
2.75
0.12
-0.03
-1.87
-3.24
0.81
2.20
-0.73
0.62
-1.03
0.32
0.08
-0.80
0.82
-0.67
...
0.91
-0.07
0.15
0.92
1.35
0.38
0.40
-0.01
-0.06
-0.50
0.78
0.10
0.40
0.66
0.27
-0.88
-1.05
-0.39
0.14
-0.37
0.19
-1.36
-0.64
0.34
-1.20
0.46
0.17
-0.12
-0.19
-0.45
4.10
-0.21
...
0.17
0.38
-0.31
-0.19
-2.80
0.95
0.65
2.75
-0.06
0.36
-0.12
-0.08
-0.25
-0.42
0.09
-0.30
0.08
-1.07
0.33
...
-0.95
-3.21
-0.29
-0.04
-1.29
-0.11
Stock
Net
Sym Close Chg
BankofMontreal BMO 77.07 -0.15
BankNY Mellon BK 51.02 0.09
BkNovaScotia BNS 65.34 -0.25
t Barclays
BCS 9.36 -0.08
Bard CR
BCR 333.08 1.19
BarrickGold ABX 13.95 -0.03
BaxterIntl BAX 64.41 0.37
BectonDicknsn BDX 220.00 0.77
Berkley
WRB 68.13 -0.61
BerkHathwy A BRK.A 276347687.00
BerkHathwy B BRK.B 184.40 0.72
BerryGlobal BERY 58.57 1.03
BestBuy
BBY 56.97 0.29
Bio-RadLab A BIO 254.43 -3.76
BlackKnight BKI 46.15 0.30
BlackBerry BB 10.69 -0.09
BlackRock BLK 465.11 -0.72
BlackstoneGroup BX 31.76 -0.37
BoardwalkPipe BWP 14.30 -0.25
Boeing
BA 262.42 1.57
BorgWarner BWA 52.03 -0.04
BostonProps BXP 125.93 0.08
BostonSci BSX 28.45 0.09
Braskem
BAK 29.57 -0.46
Bristol-Myers BMY 60.99 0.13
BritishAmTob BTI 64.71 -0.29
BrixmorProp BRX 18.02 -0.23
BroadridgeFinl BR 87.58 -0.87
BrookfieldMgt BAM 42.21 0.19
BrookfieldInfr BIP 43.77 0.30
Brown&Brown BRO 49.40 -0.08
Brown-Forman A BF.A 58.78 1.09
Brown-Forman B BF.B 58.18 0.90
t BuckeyePtrs BPL 49.74 -0.77
Bunge
BG 66.31 -0.84
BurlingtonStore BURL 98.25 -0.05
CBD Pao
CBD 21.29 -0.44
s CBRE Group CBG 42.18 0.65
CBS A
CBS.A 55.79 -1.34
CBS B
CBS 55.92 -0.82
CF Industries CF 37.37 0.09
CGI Group GIB 52.97 -0.38
CIT Group CIT 45.91 1.22
s CMS Energy CMS 49.63 0.36
CNA Fin
CNA 54.42 0.13
CNOOC
CEO 140.87 -1.68
CPFLEnergia CPL 16.77 0.02
CRH
CRH 35.11 -0.69
CVS Health CVS 71.48 0.49
s CabotOil
COG 29.06 0.07
CalAtlantic CAA 51.81 -0.16
CamdenProperty CPT 94.73 0.54
CampbellSoup CPB 47.27 -0.15
CIBC
CM 88.85 -0.61
CanNtlRlwy CNI 80.33 -0.67
CanNaturalRes CNQ 36.06 -0.46
CanPacRlwy CP 173.35 -1.91
Canon
CAJ 38.38 -0.38
CapitalOne COF 86.95 -0.20
CardinalHealth CAH 58.33 -0.22
Carlisle
CSL 109.10 0.03
CarMax
KMX 72.35 -0.33
Carnival
CCL 65.98 1.32
Carnival
CUK 66.15 1.12
Caterpillar CAT 136.53 0.05
Celanese A CE 105.80 0.08
Cemex
CX
7.91 -0.19
CenovusEnergy CVE 10.94 -0.32
Centene
CNC 94.36 0.68
CenterPointEner CNP 29.63 0.22
CentraisElBras EBR 6.15 0.13
CenturyLink CTL 15.33 -0.15
Chemours CC 51.91 1.84
Chevron
CVX 117.23 0.05
ChinaEastrnAir CEA 24.73 -0.44
ChinaLifeIns LFC 17.42 -0.34
ChinaMobile CHL 51.19 -0.40
ChinaPetrol SNP 73.52 -0.97
ChinaSoAirlines ZNH 38.15 0.20
ChinaTelecom CHA 50.00 -0.19
ChinaUnicom CHU 15.51 0.31
t Chipotle
CMG 277.50 -1.95
Chubb
CB 151.34 -0.01
ChunghwaTele CHT 33.69 -0.27
Church&Dwight CHD 45.54 0.79
Cigna
CI 197.61 -0.37
CimarexEnergy XEC 121.87 -3.18
Citigroup
C
71.99 -0.26
CitizensFin CFG 37.20 0.52
Clorox
CLX 135.08 3.03
Coca-Cola KO 46.72 0.18
Coca-Cola Euro CCE 39.42 -0.08
Coca-Cola Femsa KOF 68.52 -0.21
ColgatePalmolive CL 73.70 0.49
ColonyNorthStar CLNS 12.60 0.03
Comerica
CMA 76.94 2.01
SABESP
SBS 9.09 0.19
ConagraBrands CAG 34.84 0.04
ConchoRscs CXO 142.41 -0.80
ConocoPhillips COP 52.57 -0.42
Stock
Net
Sym Close Chg
s ConEd
ED 88.31
s ConstBrands A STZ 220.76
s ConstBrands B STZ.B 221.28
ContinentalRscs CLR 45.83
Cooper
COO 237.07
Corning
GLW 31.66
Coty
COTY 16.75
Credicorp
BAP 201.09
CreditSuisse CS 15.87
CrownCastle CCI 112.90
CrownHoldings CCK 59.45
Cullen/Frost CFR 95.20
Cummins
CMI 169.20
s DCT Industrial DCT 60.72
s DTE Energy DTE 114.24
DXC Tech DXC 96.80
s Danaher
DHR 93.33
Darden
DRI 82.84
DaVita
DVA 54.99
Deere
DE 131.91
DellTechs DVMT 81.81
DelphiAuto DLPH 95.57
DeltaAir
DAL 48.86
DeutscheBank DB 17.93
DevonEnergy DVN 39.65
Diageo
DEO 135.95
DigitalRealty DLR 122.70
DiscoverFinSvcs DFS 65.00
Disney
DIS 104.74
DolbyLab
DLB 60.05
s DollarGeneral DG 83.55
DominionEner D
81.85
Domino's
DPZ 173.03
Donaldson DCI 46.39
DouglasEmmett DEI 40.51
Dover
DOV 93.79
DowDuPont DWDP 70.46
DrPepperSnap DPS 87.03
DrReddy'sLab RDY 35.51
s DukeEnergy DUK 89.88
DukeRealty DRE 29.11
ENI
E
33.41
EOG Rscs EOG 104.46
EQT
EQT 64.58
EQT Midstream EQM 69.28
EastmanChem EMN 91.43
Eaton
ETN 77.94
EatonVance EV 50.89
Ecolab
ECL 131.64
Ecopetrol
EC 11.86
EdisonInt
EIX 81.10
EdwardsLife EW 105.24
EmersonElec EMR 61.39
EnbridgeEnPtrs EEP 14.03
t Enbridge
ENB 36.22
Encana
ECA 12.26
EnelAmericas ENIA 10.20
EnelChile
ENIC 5.68
EnelGenChile EOCC 25.90
EnergyTransferEq ETE 16.72
EnergyTransfer ETP 16.80
Entergy
ETR 86.64
EnterpriseProd EPD 24.36
Equifax
EFX 108.79
EquityLife ELS 90.57
EquityResdntl EQR 70.15
EssexProp ESS 258.63
s EsteeLauder EL 126.32
EverestRe RE 228.55
EversourceEner ES 64.76
s Exelon
EXC 42.09
ExtraSpaceSt EXR 86.87
ExxonMobil XOM 82.89
s FMC
FMC 94.88
FactSet
FDS 195.89
FederalRealty FRT 130.89
FedEx
FDX 221.43
Ferrari
RACE 110.44
FiatChrysler FCAU 17.31
FibriaCelulose FBR 15.41
s FidelityNatlFin FNF 38.74
FNFV Group FNFV 17.50
FidelityNtlInfo FIS 92.85
s 58.com
WUBA 73.00
FirstAmerFin FAF 53.96
FirstData
FDC 17.13
FirstRepBank FRC 91.59
s FirstEnergy FE 34.21
FleetCorTech FLT 181.42
Fluor
FLR 46.68
FomentoEconMex FMX 86.99
FordMotor F
12.16
ForestCIty A FCE.A 25.37
Fortis
FTS 37.72
Fortive
FTV 72.60
FortBrandsHome FBHS 64.43
Franco-Nevada FNV 83.39
FranklinRscs BEN 40.81
Freeport-McMoRan FCX 14.43
FreseniusMed FMS 48.63
1.12
2.09
3.16
-0.86
8.01
-0.07
0.44
-0.63
-0.16
-0.38
0.30
1.85
0.25
0.97
1.79
0.86
1.09
0.20
-0.01
-0.32
-0.77
0.28
-0.03
-0.01
-0.76
-0.06
1.85
0.24
-0.04
-0.60
-0.60
1.04
-0.30
0.11
0.38
...
0.49
0.71
-0.10
0.99
0.15
-0.28
-0.12
-0.60
-1.61
0.68
0.02
-0.07
1.34
-0.18
1.04
1.39
-0.22
-0.28
-0.26
-0.39
-0.10
-0.01
-0.22
-0.75
0.26
1.51
-0.64
0.05
1.15
0.90
2.25
1.71
-2.59
0.69
0.79
0.87
-0.05
1.66
-0.32
-1.12
3.28
0.88
0.04
0.07
0.19
0.25
0.09
4.14
-0.29
0.06
1.37
0.33
0.87
-0.36
0.96
0.15
0.45
0.02
-0.05
0.46
-0.59
-0.32
0.02
0.21
New Highs and Lows | WSJ.com/newhighs
Monday, November 13, 2017
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
75.83 2.0
4.64 6.0
13.79 -1.4
12.51 ... VirtusGlbMulti VGI
19.46 0.3
163.56 1.5 VishayPrecision VPG
26.40 4.2
127.15 ... VMware
VMW 122.44 -0.3
63.42 1.5 WEX
WEX 125.56 ...
76.30 1.8 Wal-Mart
WMT 91.98 0.1
106.61 0.4 WarriorMetCoal HCC
28.58 2.5
88.62 0.3 WW Ent
WWE 27.71 1.2
54.89 0.2 XcelEnergy
50.85 1.2
XEL
26.62 0.6
227.13 1.9
15.23 0.7
10.80 5.9
AMC
14.82 1.3 AMC Ent
43.95 -0.8
AZZ
48.40 -0.2 AZZ
42.21 1.6 AllerganPfdA AGNpA 619.59 1.4
AGN 169.61 1.3
49.85 0.7 Allergan
62.40 0.3
AXE
29.26 0.2 AnixterIntl
2.32 71.1 AnteroMidstream AMGP 17.20 -2.3
26.81 -2.2
88.66 1.3 AnteroMidstream AM
16.18 -0.2
221.28 1.4 ApolloSrFRFd AFT
19.79 -0.6
ARD
221.50 1.0 Ardagh
1.87 -2.1
120.99 -0.2 AvonProducts AVP
16.22 -1.8
BT
Group
BT
16.38 1.1
9.29 -0.8
BCS
29.67 0.1 Barclays
57.26 1.3
BKH
60.82 1.6 BlackHills
9.77 -1.0
114.33 1.6 BlkRk2022GlbIncm BGIO
93.38 1.2 BlueCapReins BCRH 12.10 -1.6
49.39 -1.5
BPL
41.53 0.9 BuckeyePtrs
19.20 0.5
85.09 -0.7 BylineBancorp BY
90.22 1.1 CBL AssocPfdE CBLpE 21.67 -3.4
CMG 263.00 -0.7
126.99 1.4 Chipotle
12.87 -2.4
83.95 3.8 ClearBridgeEnMLPFd CEM
10.67 -1.6
42.18 1.9 ClearbridgeEngyMLP EMO
7.10 0.1
CoeurMining
CDE
95.25 1.8
4.25 -2.5
38.83 0.5 CommunityHlthSys CYH
10.59
-1.9
CushingTotRetFd
SRV
74.77 6.0
24.75 3.4
CustomersBancorp CUBI
32.24 2.1
17.75 -1.7
DieboldNixdorf
DBD
34.50 1.0
0.92 -0.4
DoverDowns
DDE
10.88 4.2
5.37 -3.7
Duff&PhelpsSelEn DSE
9.98 -4.0
3.50 -4.0
EastmanKodak KODK
37.37 3.8
EastmanKodakWt KODK.WS 0.01 -45.6
63.81 0.8
14.12 -0.9
EtnVncFR IT
EFT
55.19 0.1
14.08 -0.6
EtnVncSrFltRte EFR
36.85 1.7
6.34 -0.5
EtnVncSrIT
EVF
42.60 -0.5
1.16 -3.3
EldoradoGold EGO
46.10 -0.7
13.22 -1.6
EnbridgeEnergy EEQ
47.29 2.4
36.00 -0.7
Enbridge
ENB
96.14 0.8
EntercomCommsWi ETMw 10.35 -0.5
15.15 7.7
EnvisionHlthcr EVHC 23.77 3.6
108.43 1.7
69.10 -1.1
EsterlineTechs ESL
23.94 -0.7
11.45 -3.6
FidcryClymrOppFd FMO
37.07 1.7
14.02 -1.5
FT MLP&Energy FEI
148.46 1.6
11.34 -2.0
FT NewOppsMLP FPL
42.62 1.7
12.76 -0.8
FT SrFR Incm FCT
52.85 1.6 FortunaSilver
4.03 2.0
FSM
45.08 0.6 GabelliGlbSmRt GGZr
0.23 -2.8
89.62 0.7 GameStop
15.91 -1.4
GME
6.84 1.6 GeneralElec
18.75 -7.2
GE
13.10 7.0 GenesisEnergy GEL
22.19 -2.5
19.10 ... GenieEnergy
4.94 -5.9
GNE
127.04 0.8 Glaukos
GKOS 28.74 -0.3
28.86 1.5 GlaxoSmithKline GSK
34.97 -0.6
24.98 ... Graham
18.01 0.9
GHM
157.00 1.0 GrupoTelevisa TV
19.61 1.4
70.42 1.1 HancockTxAdvGlb HTY
8.43 -0.7
14.31 1.4 HeclaMining
3.86 -2.7
HL
16.14 0.2 HighlandFROpps HFRO 15.00 -1.1
24.50 1.9 Intrexon
10.26 6.5
XON
44.15 0.9 InvescoCreditOpps VTA
11.40 -0.3
25.76 0.3 JohnsonControls JCI
35.85 -2.5
30.53 0.7 JustEnergy
4.47 -2.4
JE
48.99 1.1 KayneAnderson KED
14.44 -3.7
21.70 2.5 KayneAnEnerTRFd KYE
9.63 -3.0
51.21 0.7 KayneAnMLPInv KYN
14.94 -2.7
67.22 1.3 KayneAnMidstrEner KMF
12.83 -1.8
51.03 0.6 KeyEnergySvcs KEG
8.92 -10.5
31.67 1.3 KinderMorgan KMI
17.41 -1.2
61.55 1.5 KinderMorganPfdA KMIpA 36.01 -1.4
9.20 1.1 LSC Comm
LKSD 13.72 -6.3
53.70 1.2 LendingClub
4.16 -1.2
LC
155.01 0.7 MFS Intermd MIN
4.16 ...
105.96 0.5 NationalGrid
59.11 -1.3
NGG
122.31 0.7 NewSeniorInvt SNR
8.10 -0.2
68.93 2.9 NewellBrands NWL
28.11 -2.8
40.19 2.0 NuSTAREnergy NS
31.06 -2.1
38.58 -0.8 NuvEnerMLPTR JMF
10.36 -3.2
36.71 -0.3 NuvFRIncmFd JFR
11.08 1.1
44.33 0.3 NuvFR OppFd JRO
10.72 -1.6
25.82 -0.1 PHH
10.94 -0.2
PHH
27.00 0.2 PIMCO HiIncm PHK
7.45 -2.3
TysonFoods
TSN
VHI
NYSE highs - 100 Valhi
VirtusGlbDiv&Incm ZTR
AberdeenGrChinaFd GCH
AirProducts
APD
AlexandriaRlEst ARE
Ameren
AEE
AEP
AEP
AmericanFin
AFG
Amphenol
APH
AnthemUn
ANTX
ApolloGlMgmtPfdA APOpA
AristaNetworks ANET
ArmadaHoffler AHH
AsiaPacificFund APB
BCE
BCE
CBRE Group
CBG
CMS Energy
CMS
CabotOil
COG
ChinaZenixAuto ZX
ConEd
ED
ConstBrands B STZ.B
ConstBrands A STZ
Cooper-Standard CPS
Cott
COT
CubeSmart
CUBE
DCT Industrial DCT
DTE Energy
DTE
Danaher
DHR
DaqoNewEnergy DQ
DollarGeneral DG
DukeEnergy
DUK
EsteeLauder
EL
EvercoreA
EVR
Exelon
EXC
FMC
FMC
FidelityNatlFin FNF
58.com
WUBA
FirstIndRlty
FR
FirstEnergy
FE
Gannett
GCI
GeoPark
GPRK
GlobusMedical GMED
GrubHub
GRUB
Haemonetic
HAE
HawaiianElec HE
HollyFrontier
HFC
HoraceMannEdu HMN
DR Horton
DHI
IDACORP
IDA
IONGeophysical IO
Insperity
NSP
InvitationHome INVH
JanusHenderson JHG
JonesLang
JLL
KornFerry
KFY
LambWeston LW
LibertyProperty LPT
LifeStorage
LSI
MFS SpcVal
MFV
MagnaChipSem MX
ManchesterUnited MANU
Manpower
MAN
NRG Energy
NRG
NTTDoCoMo DCM
NextEraEnergy NEE
NextEraEnergyUn NEEpQ
NorthstarRltyEur NRE
OM AssetMgmt OMAM
Oppenheimer A OPY
PNM Resources PNM
PSBusParksPfdW PSBpW
PlanetFitness PLNT
PortlandGenElec POR
PrefApartment APTS
Progressive
PGR
Prologis
PLD
PublicServiceEnt PEG
PulteGroup
PHM
QTS Realty
QTS
ResoluteForest RFP
RobertHalf
RHI
Rogers
ROG
Salesforce.com CRM
SempraEnergy SRE
SiteOneLandscape SITE
Square
SQ
StarwoodWaypt SFR
SuncorEnergy SU
Teradyne
TER
TsakosEngyNavPfdE TNPpE
TwoHarborsPfdB TWOpB
NYSE lows - 102
52-Wk %
Sym Hi/Lo Chg
PitneyBowes PBI
PitneyBowesNt43 PBIpB
PPlus CZN-1
PIY
PrestigeBrands PBH
Quantum
QTM
RedwoodTrust RWT
RitchieBros
RBA
SalientMidstream SMM
SandRidgeMS SDT
SandRidgeMS II SDR
SpectraEnerPtrs SEP
SpiritRealtyPfdA SRCpA
THLCreditSrLoan TSLF
TownsquareMedia TSQ
UniversalHealthB UHS
VoyaPrimeRate PPR
WstAstCpLoanFd TLI
WesternGasEquity WGP
WesternGasPtrs WES
WideOpenWest WOW
Willbros
WG
WorldFuelSvcs INT
XeriumTech
XRM
9.86 -3.4
23.84 -2.8
19.26 -15.8
40.11 2.1
4.22 -14.4
14.62 ...
24.08 -1.0
10.05 -2.7
1.19 -4.0
1.19 -5.3
40.01 -2.2
23.87 -0.4
16.40 -0.2
7.44 -2.7
95.59 0.1
5.00 0.2
10.45 -0.3
36.11 -2.5
44.26 -2.3
11.28 -3.3
1.33 -6.8
26.05 -0.2
3.79 -5.0
Net
Sym Close Chg
GGP
GGP 24.05
Gallagher AJG 63.94
Gap
GPS 26.72
GardnerDenver GDI 29.41
Gartner
IT 116.32
Gazit-Globe GZT 9.39
GeneralDynamics GD 200.13
t GeneralElec GE 19.02
GeneralMills GIS 52.97
GeneralMotors GM 43.57
Genpact
G
31.10
GenuineParts GPC 85.29
Gildan
GIL 30.17
t GlaxoSmithKline GSK 35.09
GlobalPayments GPN 99.60
GoDaddy
GDDY 48.57
Goldcorp
GG 13.26
GoldmanSachs GS 240.27
Graco
GGG 128.82
Grainger
GWW 195.79
GreatPlainsEner GXP 33.65
GpoAvalAcciones AVAL 8.22
GpFinSantandMex BSMX 8.12
t GrupoTelevisa TV 19.98
GuidewireSoftware GWRE 79.82
HCA Healthcare HCA 77.71
HCP
HCP 27.23
HDFC Bank HDB 93.61
HP
HPQ 21.17
HSBC
HSBC 48.26
Halliburton HAL 44.21
Hanesbrands HBI 19.23
HarleyDavidson HOG 46.88
Harris
HRS 138.97
HartfordFinl HIG 55.69
HealthcareAmer HTA 30.75
Heico
HEI 90.16
Heico A
HEI.A 75.70
Helmerich&Payne HP 56.38
Herbalife
HLF 64.85
Hershey
HSY 108.18
Hess
HES 46.59
HewlettPackard HPE 13.48
Hilton
HLT 72.62
s HollyFrontier HFC 41.85
HomeDepot HD 165.35
HondaMotor HMC 32.81
Honeywell HON 146.72
HormelFoods HRL 32.45
s DR Horton DHI 47.09
HostHotels HST 20.03
HuanengPower HNP 27.97
Hubbell
HUBB 121.76
Humana
HUM 240.94
HuntingtonIngalls HII 239.18
Huntsman HUN 30.69
HyattHotels H
69.74
ICICI Bank IBN 9.46
ING Groep ING 18.16
Invesco
IVZ 34.52
IDEX
IEX 127.96
IllinoisToolWks ITW 157.61
Infosys
INFY 14.80
Ingersoll-Rand IR
84.76
Ingredion
INGR 129.13
ICE
ICE 67.08
InterContinentl IHG 56.35
IBM
IBM 148.40
IntlFlavors IFF 149.72
IntlPaper
IP
54.39
Interpublic IPG 18.67
s InvitationHome INVH 23.57
IronMountain IRM 40.99
IsraelChemicals ICL
4.06
ItauUnibanco ITUB 12.69
JPMorganChase JPM 97.86
JacobsEngg JEC 59.82
JamesHardie JHX 15.97
s JanusHenderson JHG 37.04
J&J
JNJ 139.76
t JohnsonControls JCI 36.00
s JonesLang JLL 148.16
JuniperNetworks JNPR 25.36
KAR Auction KAR 48.25
KB Fin
KB 50.82
KKR
KKR 19.23
KT
KT 13.91
KSCitySouthern KSU 105.12
Kellogg
K
63.76
KeyCorp
KEY 17.92
KeysightTechs KEYS 44.32
KilroyRealty KRC 74.48
KimberlyClark KMB 115.41
KimcoRealty KIM 18.95
t KinderMorgan KMI 17.46
Knight-Swift KNX 38.04
Kohl's
KSS 41.18
KoninklijkePhil PHG 38.79
KoreaElcPwr KEP 17.17
Kroger
KR 22.14
Kyocera
KYO 68.65
LATAMAirlines LTM 13.06
L Brands
LB 48.95
LG Display LPL 13.32
LINE
LN 43.24
L3 Tech
LLL 185.12
LabCpAm LH 149.87
s LambWeston LW 52.78
LasVegasSands LVS 67.25
Lazard
LAZ 47.69
Lear
LEA 174.36
Leggett&Platt LEG 45.81
Leidos
LDOS 61.63
Lennar A
LEN 58.22
Lennar B
LEN.B 48.76
LennoxIntl LII 189.23
LeucadiaNatl LUK 25.65
s LibertyProperty LPT 44.87
EliLilly
LLY 82.86
LincolnNational LNC 73.90
LionsGate A LGF.A 30.69
LionsGate B LGF.B 29.55
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
the latest session. % CHG-Daily percentage change from the previous trading session.
Stock
Stock
1.85
-0.14
-0.51
0.65
-1.16
0.05
0.36
-1.47
-0.31
0.91
-0.08
-0.16
-0.07
-0.21
0.75
0.42
0.01
0.12
-1.35
-7.69
0.49
-0.11
-0.03
0.28
-0.49
-0.97
0.22
-0.41
-0.06
-0.46
-0.37
0.09
-0.42
0.21
0.17
0.17
-0.28
-0.50
-1.77
-0.64
-0.42
-0.52
-0.22
-0.07
-0.20
1.24
-0.12
0.97
0.12
1.09
0.04
-0.13
-0.84
-3.45
-1.48
-0.37
-0.09
-0.15
-0.05
-0.34
-0.06
0.47
-0.21
-0.20
-1.17
0.81
-0.43
-0.76
2.95
-0.46
-0.12
-0.16
0.33
-0.03
...
0.35
-0.21
-0.02
0.62
0.20
-0.93
2.40
0.36
-0.24
-0.37
-0.03
-0.42
0.32
-0.94
0.28
-0.24
-0.37
1.27
-0.20
-0.21
-0.34
-1.86
-0.24
-0.14
0.06
-0.96
0.13
-0.71
-0.18
0.69
0.90
-0.59
0.82
-0.15
0.40
-1.07
-0.13
-0.24
-0.49
-0.79
0.44
-0.01
0.28
-0.43
0.41
-0.54
-0.50
FrankFTSEJapan FLJP
FrankFTSEJapanHdg FLJH
FrankFTSEMexico FLMX
FrankFTSE SKorea FLKR
FrankFTSETaiwan FLTW
FrankFTSE UK FLGB
GuggBS2027CorpBd BSCR
iShiBondsDec2027Cp IBDS
HancockMultiSC JHSC
NuShESGUSAggBd NUBD
ProShrUSCnsmrSvc SCC
ProShrUSRlEst SRS
ProShrUSUtil SDP
SchwabSrtTRmUSTrsr SCHO
USAA IntlVal UIVM
USAA USA SC Val USVM
VanEckHiIncmInfra YMLI
VirtusGlovistaEM EMEM
25.83
25.77
24.75
25.39
25.38
24.57
19.90
24.72
24.90
24.92
27.95
28.51
22.85
50.19
49.70
49.04
12.96
24.75
-0.3
-0.4
-1.2
-1.5
-0.3
-1.2
...
-0.2
-0.4
-0.2
-2.9
-0.9
-3.0
...
-0.6
0.1
-2.1
-1.1
NYSE American highs - 4
Birks
BGI
LadenburgThalmann LTS
TrioTech
TRT
WirelessTel
WTT
2.69
3.33
7.21
2.12
19.0
-2.4
7.3
4.5
NYSE American lows - 11
2.65 -6.7
AmShrHosp
AMS
4.76 ...
BallantyneStrong BTN
0.13 -54.8
Banro
BAA
CRH Medical CRHM 1.55 -2.9
1.31 -1.4
CanFiteBiopharm CANF
eMagin
1.65 -8.3
EMAN
22.03 -2.3
FT EnerIncome FEN
10.85 -4.5
IMPAC Mortgage IMH
65.16 ...
2.16 -8.4
KlondexMines KLDX
92.87 0.3
8.48 -2.0
NeubrgBermMLPIncm NML
30.20 0.4
0.28 -3.4
RegionalHlthProp RHE
74.55
24.25
32.98
42.91
15.69
25.36
36.49
20.52
25.70
26.14
26.52
26.40
35.78
64.35
45.69
28.66
24.97
51.00
33.00
82.95
140.53
25.69
25.92
30.44
29.20
24.96
35.45
26.57
44.17
47.17
106.03
68.35
52.91
34.02
24.55
74.85
36.93
101.54
64.75
48.94
109.20
56.22
48.99
36.70
84.21
146.57
123.40
31.49
38.09
1.4
1.6
2.7
0.7
...
0.3
1.0
0.1
0.1
0.9
0.1
-0.2
0.5
2.0
0.5
0.4
0.8
0.2
-0.8
0.4
1.1
0.8
0.2
...
0.9
0.3
0.1
-0.4
2.2
0.4
...
0.7
2.4
0.3
0.8
0.5
0.2
3.5
0.7
0.4
0.1
1.2
0.5
0.5
...
0.3
1.1
0.3
0.2
NYSE Arca lows - 30
AIPoweredEquity AIEQ
DirexCSI300CnA CHAD
DirexMexicoBl3 MEXX
DirexRealEstBr3 DRV
DirexSilverMinBl2 SHNY
ETFMG PrimeJrSilver SILJ
ETRACSMthPay2xLev DVHL
ETRACSMthlyPay2x SMHD
FrankFTSEBrazil FLBR
FrankFTSEEurope FLEE
FrankFTSEEurHdg FLEH
FrankFTSEGermany FLGR
24.18
31.03
20.47
10.05
8.50
10.51
19.71
17.02
23.88
24.62
24.57
24.90
...
-0.2
0.4
-1.5
-1.3
-1.0
-0.1
-1.9
-1.3
-1.0
-2.4
-0.6
Nasdaq highs - 74
AlignTech
ALGN 257.60
AllenaPharm
ALNA 12.50
AltairEngg
ALTR 21.78
Amazon.com AMZN1139.90
2.09
AptoseBiosci APTO
44.39
CRA Intl
CRAI
CadenceDesign CDNS 44.69
7.30
CambiumLearning ABCD
CanterburyPark CPHC 13.95
CareerEducation CECO 13.10
21.98
Celcuity
CELC
1.87
ChinaInfoTech CNIT
5.77
ChromaDex
CDXC
Cognex
CGNX 138.61
Coherent
COHR 314.76
CSX-LinksCrudeOil USOI 26.13
7.95
CumberlandPharm CPIX
8.70
DASAN Zhone DZSI
2.36
EnphaseEnergy ENPH
23.55
FirstComSC
FCCO
58.56
FiveBelow
FIVE
20.80
GDSHoldings GDS
GoldenEnt
GDEN 31.84
12.96
GTx
GTXI
HollysysAuto HOLI 23.71
ICU Medical
ICUI 210.95
47.65
II-VI
IIVI
IPG Photonics IPGP 225.55
33.92
IntegratedDevice IDTI
15.85
Intricon
IIN
Intuit
INTU 155.37
iShMSCIChinaETF MCHI 67.59
JensynAcqn Rt JSYNR 0.53
5.99
Joint
JYNT
KellyServices A KELYA 29.30
66.19
LGI Homes
LGIH
45.87
MicronTech
MU
MonsterBeverage MNST 62.42
Nathan's
NATH 95.88
NatlEnerSvsWt NESRW 0.66
9.97
NatlEnerSvs
NESR
NektarTherap NKTR 41.34
OncoSecMedical ONCS
2.95
Otelco
OTEL 12.60
Overstock
OSTK 56.95
43.20
PAM Transport PTSI
PennNational PENN 27.43
27.94
PinnacleEnt
PNK
25.34
PwrShDivAch PFM
PrincipalPriceSet PSET 31.10
29.20
RCI Hospitality RICK
7.04
RCM Tech
RCMT
55.55
RMR Group
RMR
Roku
ROKU 47.49
SageTherap
SAGE 99.80
SperoTherap
SPRO 15.40
SpringBkPharm SBPH 18.93
Synopsys
SNPS 87.94
TechTarget
TTGT 13.55
9.23
TheBancorp
TBBK
1.7
3.6
4.6
0.3
20.6
-1.9
1.4
1.3
-1.9
6.0
-3.0
9.1
7.0
0.8
-2.5
-0.8
4.2
3.2
18.1
1.1
0.9
1.5
0.7
14.7
0.9
2.0
0.7
0.5
-1.5
8.7
1.0
...
11.2
7.1
3.1
3.4
1.8
1.7
0.9
1.7
1.6
14.2
4.0
4.2
5.9
8.9
1.0
2.1
0.4
0.7
2.8
4.0
1.5
28.5
-1.4
4.2
-3.3
0.6
2.4
1.7
Net
Sym Close Chg
LiveNationEnt LYV 44.93 0.16
LloydsBanking LYG 3.53 -0.02
LockheedMartin LMT 312.95 1.78
Loews
L
49.89 0.38
Lowe's
LOW 77.53 0.04
LyondellBasell LYB 104.19 -0.07
M&T Bank MTB 159.44 2.34
MGM Resorts MGM 33.06 0.18
MPLX
MPLX 34.13 -0.65
MSCI
MSCI 125.46 0.44
Macerich
MAC 64.07 -0.30
MacquarieInfr MIC 65.59 -0.59
Macy's
M
19.33 -0.65
MagellanMid MMP 66.22 -1.12
MagnaIntl MGA 53.04 0.02
s Manpower MAN 126.00 1.03
ManulifeFin MFC 21.07 -0.15
MarathonOil MRO 15.55 -0.07
MarathonPetrol MPC 62.20 0.48
Markel
MKL 1071.76 8.35
Marsh&McLennan MMC 83.00 -0.15
MartinMarietta MLM 212.47 -0.78
Masco
MAS 38.89 0.28
Mastercard MA 149.69 0.15
McCormick MKC 96.96 0.04
McCormickVtg MKC.V 97.13 0.07
McDonalds MCD 167.37 1.78
McKesson MCK 138.05 0.44
Medtronic MDT 79.20 -0.13
Merck
MRK 55.10 -0.38
MetLife
MET 52.16 -0.04
MettlerToledo MTD 630.84 8.18
MichaelKors KORS 54.09 -0.62
MicroFocus MFGP 34.27 -0.26
MidAmApt MAA 106.03 0.56
MitsubishiUFJ MTU 6.51 -0.03
MizuhoFin MFG 3.58
...
MobileTeleSys MBT 10.93 -0.12
MohawkIndustries MHK 265.02 1.17
MolsonCoors B TAP 80.84 0.50
Monsanto MON 118.15 -0.15
Moody's
MCO 142.15 -0.04
MorganStanley MS 48.63 -0.13
Mosaic
MOS 23.28 0.44
MotorolaSolutions MSI 91.37 0.30
s NRG Energy NRG 28.78 0.43
s NTTDoCoMo DCM 24.93 0.01
NVR
NVR 3300.00 10.36
t NationalGrid NGG 59.20 -0.75
NatlOilwell NOV 33.06 -0.46
NatlRetailProp NNN 42.55 0.38
NewOrientalEduc EDU 84.58 -0.95
NY CmntyBcp NYCB 12.78 0.66
t NewellBrands NWL 28.47 -0.83
NewfieldExpln NFX 32.09 -1.22
NewmontMining NEM 35.71 0.19
s NextEraEnergy NEE 156.78 1.62
NielsenHoldings NLSN 36.17 -0.45
Nike
NKE 55.91 -0.18
NiSource
NI
27.32 0.12
NobleEnergy NBL 27.53 -0.58
Nokia
NOK 4.86 -0.05
NomuraHoldings NMR 5.71 -0.11
Nordstrom JWN 38.72 -1.31
NorfolkSouthern NSC 127.62 0.47
NorthropGrumman NOC 298.48 0.35
Novartis
NVS 82.71 0.33
NovoNordisk NVO 49.76 -0.15
Nucor
NUE 55.70 -0.13
OGE Energy OGE 35.12 0.11
ONEOK
OKE 52.21 -0.19
OccidentalPetrol OXY 67.93 -0.24
Olin
OLN 36.54
...
OmegaHealthcare OHI 28.17 0.12
Omnicom OMC 67.92 0.37
Oracle
ORCL 49.40 0.08
Orange
ORAN 16.46 -0.15
OrbitalATK OA 132.89 -0.07
Orix
IX
85.10 -1.16
Oshkosh
OSK 85.51 0.61
OwensCorning OC 82.20 0.31
PG&E
PCG 56.89 -0.06
PLDT
PHI 31.58 -2.55
PNC Fin
PNC 132.23 -0.25
POSCO
PKX 71.29 -0.74
PPG Ind
PPG 114.55 -0.12
PPL
PPL 36.63 0.34
PVH
PVH 127.47
...
PackagingCpAm PKG 112.36 2.09
PaloAltoNtwks PANW 138.67 -1.68
ParkHotels PK 28.77 -0.04
ParkerHannifin PH 181.30 -0.93
ParsleyEnergy PE 26.77 -0.41
Pearson
PSO 9.11 -0.01
PembinaPipeline PBA 35.77 -0.03
Pentair
PNR 68.27 0.22
PepsiCo
PEP 114.04 1.29
PerkinElmer PKI 71.27 -0.06
Perrigo
PRGO 86.80 -0.90
PetroChina PTR 70.20 -1.26
PetroleoBrasil PBR 10.62 -0.09
PetroleoBrasilA PBR.A 10.06 -0.10
Pfizer
PFE 35.30 0.12
PhilipMorris PM 103.51 0.49
Phillips66 PSX 93.32 -0.34
PinnacleFoods PF 54.03 -0.19
PinnacleWest PNW 89.79 1.45
PioneerNatRscs PXD 156.92 -2.01
PlainsAllAmPipe PAA 20.36 -0.73
PlainsGP
PAGP 20.88 -0.67
PolarisIndustries PII 120.28 0.92
Potash
POT 19.11 0.04
Praxair
PX 148.15 -0.13
PrincipalFin PFG 68.03 -0.03
Procter&Gamble PG 89.00 0.84
s Progressive PGR 51.10 0.35
s Prologis
PLD 67.07 0.85
PrudentialFin PRU 110.44 -0.28
Prudential PUK 48.79 0.15
s PublicServiceEnt PEG 50.66 0.28
PublicStorage PSA 213.25 1.73
s PulteGroup PHM 31.57 0.42
Qudian
QD 27.23 -0.28
52-Wk %
Sym Hi/Lo Chg Stock
NYSE Arca highs - 52
BarclaysWILETN WIL
CnsmrDiscSelSector XLY
DirexCSI300CnABl2 CHAU
DirexHmbldrBull3 NAIL
DirexRealEstBl3 DRN
DirexUtilBl3X UTSL
EcoLogicalStrat HECO
Entrepreneur30Fund ENTR
FidelityRealEst FREL
FidelityMSCIUtils FUTY
FTHeitmanPrmRlEst PRME
FrankFTSEChina FLCH
FrankFTSE HK FLHK
GlbXSciBetaAsiaXJ SCIX
GraniteBloomComm COMB
GuggChinaAllCap YAO
GuggChinaTech CQQQ
GuggDefEqty DEF
GuggS&P500EWRlEst EWRE
GuggSolar
TAN
HrznsS&P500CovCall HSPX
iPathGEMSIndexETN JEM
iShU.S.RealEstate IYR
iShU.S.Utilities IDU
iShMSCIHongKong EWH
iShMSCISingapore EWS
JanusVelTailLC TRSK
HancockUtils JHMU
JPM US Moment JMOM
KraneBoseraChinaA KBA
KraneMSCIChinaEnv KGRN
KraneZacksNewChina KFYP
PwrShS&P500LoVol SPLV
PwrShTreaColl CLTL
ProShrUltraRE URE
ProShrUltraUtil UPW
RealEstSectorSPDR XLRE
SPDRMSCIChinaA XINA
SPDRMSCIUSAStrat QUS
SPDRS&P500HiDiv SPYD
SPDRS&P1500ValTilt VLU
SPDRS&PHlthCareEqp XHE
SchwabUS Div SCHD
SPDR SP China GXC
UtilitiesSelSector XLU
VanEckCSI300 PEK
VanEckSMEChiNxt CNXT
VanEckRetail RTH
VangdCnsmrDiscr VCR
VangdUtilities VPU
XtrkrsHarvCSI300 ASHR
XtrkrsMSCIAllChina CN
Stock
52-Wk %
Sym Hi/Lo Chg
TheStreet
TST
TrilliumTherap TRIL
USA Tech
USAT
USA Truck
USAK
UniversalDisplay OLED
UnivLogistics ULH
UroGenPharma URGN
VascularBiogenics VBLT
VeriSign
VRSN
Wingstop
WING
WisdTrChinaxSOE CXSE
WynnResorts WYNN
XOMA
XOMA
ZAGG
ZAGG
1.56
10.70
7.60
17.18
178.71
22.85
44.63
8.05
111.37
39.20
86.59
156.40
33.00
20.43
33.7
5.9
7.1
0.5
0.7
0.9
5.4
3.3
1.3
2.2
0.6
0.8
0.2
3.1
Stock
Net
Sym Close Chg
QuestDiag DGX 92.00
QuintilesIMS Q
102.91
RELX
RENX 22.35
RELX
RELX 23.09
RPM
RPM 51.67
RSP Permian RSPP 37.14
RalphLauren RL 86.67
RaymondJames RJF 83.37
Raytheon RTN 184.46
RealtyIncome O
56.67
RedHat
RHT 123.99
RegencyCtrs REG 67.21
RegionsFin RF 15.44
ReinsuranceGrp RGA 150.25
RenaissanceRe RNR 138.80
RepublicServices RSG 63.91
ResMed
RMD 84.00
RestaurantBrands QSR 65.22
RioTinto
RIO 49.20
s RobertHalf RHI 53.53
Rockwell
ROK 192.54
RockwellCollins COL 133.37
RogersComm B RCI 52.37
Rollins
ROL 45.34
RoperTech ROP 256.04
RoyalBkCanada RY 78.57
RoyalBkScotland RBS 7.29
RoyalCaribbean RCL 124.48
RoyalDutchA RDS.A 63.90
RoyalDutchB RDS.B 65.92
SAP
SAP 112.37
S&P Global SPGI 158.03
SINOPECShanghai SHI 60.14
SK Telecom SKM 25.06
SLGreenRealty SLG 100.06
s Salesforce.com CRM 105.78
Sanofi
SNY 44.64
SantanderConUSA SC 15.93
Sasol
SSL 30.35
Scana
SCG 44.60
Schlumberger SLB 65.04
SchwabC
SCHW 44.60
ScottsMiracleGro SMG 99.10
SealedAir SEE 44.98
SemicondctrMfg SMI 9.06
s SempraEnergy SRE 121.96
SensataTech ST 47.38
ServiceCorp SCI 34.80
ServiceMaster SERV 46.89
ServiceNow NOW 125.03
ShawComm B SJR 22.66
SherwinWilliams SHW 389.71
ShinhanFin SHG 43.21
Shopify
SHOP 98.77
SimonProperty SPG 160.31
SmithAO
AOS 58.92
Smith&Nephew SNN 35.52
Smucker
SJM 106.49
Snap
SNAP 12.40
SnapOn
SNA 156.07
SOQUIMICH SQM 59.23
Sony
SNE 46.08
Southern
SO 51.82
SoCopper SCCO 43.93
SouthwestAirlines LUV 53.25
t SpectraEnerPtrs SEP 40.05
SpectrumBrands SPB 105.01
SpiritAeroSys SPR 80.25
Sprint
S
6.03
s Square
SQ 39.98
StanleyBlackDck SWK 163.97
StarwoodProp STWD 21.65
StateStreet STT 90.79
Statoil
STO 20.69
Steris
STE 87.53
STMicroelec STM 23.86
Stryker
SYK 155.75
SumitomoMits SMFG 7.85
SunCommunities SUI 93.29
SunLifeFinancial SLF 38.93
s SuncorEnergy SU 36.30
SunTrustBanks STI 57.33
SynchronyFin SYF 32.59
Syngenta SYT 92.30
Sysco
SYY 54.02
TAL Education TAL 29.56
TE Connectivity TEL 93.36
Telus
TU 38.06
Ternium
TX 28.29
TIM Part
TSU 17.72
TJX
TJX 70.76
TableauSoftware DATA 71.24
TaiwanSemi TSM 42.01
-0.05
-1.14
-0.03
-0.02
0.31
-0.83
0.04
-0.18
-0.35
0.40
-0.19
0.76
0.27
0.63
-0.90
0.46
0.94
0.10
-0.31
0.63
-0.07
-0.21
-0.18
0.35
-2.16
-0.17
-0.03
0.26
...
-0.08
-0.22
1.09
0.58
-0.62
0.17
0.54
-0.36
-0.25
-0.27
0.66
-0.70
0.33
0.47
0.63
0.32
0.83
-0.51
...
-0.02
-0.95
-0.15
0.25
0.09
-1.24
-3.44
0.36
-0.44
2.37
-0.36
0.20
1.47
-0.14
0.46
0.02
-0.24
-0.90
-0.07
-0.45
-0.16
0.77
1.00
0.12
0.14
-0.20
0.68
-0.14
1.27
0.02
0.75
0.05
-0.12
0.54
0.52
0.02
-0.17
0.16
-0.17
-0.19
-0.03
0.20
0.54
-0.91
0.29
Net
Sym Close Chg
Stock
Tapestry
TPR 40.44
TargaResources TRGP 42.29
Target
TGT 60.40
TataMotors TTM 31.99
TechnipFMC FTI 28.40
TeckRscsB TECK 21.84
TelecomArgentina TEO 32.56
TelecomItalia TI
8.06
TelecomItalia A TI.A 6.57
TeledyneTech TDY 179.37
Teleflex
TFX 256.94
TelefonicaBras VIV 14.86
Telefonica TEF 9.90
TelekmIndonesia TLK 30.01
Tenaris
TS 29.39
s Teradyne
TER 43.85
TevaPharm TEVA 11.74
Textron
TXT 53.70
ThermoFisherSci TMO 188.21
ThomsonReuters TRI 44.28
ThorIndustries THO 130.45
3M
MMM 228.22
Tiffany
TIF 93.08
TimeWarner TWX 88.49
Toll Bros
TOL 46.05
Torchmark TMK 84.69
Toro
TTC 61.92
TorontoDomBk TD 57.17
Total
TOT 55.55
TotalSystem TSS 72.77
ToyotaMotor TM 125.67
TransCanada TRP 49.48
TransDigm TDG 262.00
TransUnion TRU 54.01
Travelers
TRV 133.32
TurkcellIletism TKC 9.01
TurquoiseHill TRQ 3.08
Twitter
TWTR 20.17
TylerTech TYL 170.89
s TysonFoods TSN 75.59
UBS Group UBS 17.01
UDR
UDR 39.94
UGI
UGI 48.31
US Foods USFD 26.58
UltraparPart UGP 21.83
Unilever
UN 57.11
Unilever
UL 55.86
UnionPacific UNP 116.48
UnitedContinental UAL 57.81
UnitedMicro UMC 2.57
UPS B
UPS 114.81
UnitedRentals URI 144.61
US Bancorp USB 51.68
UnitedTech UTX 117.07
UnitedHealth UNH 212.66
t UniversalHealthB UHS 97.76
UnumGroup UNM 52.82
VEREIT
VER 8.23
VF
VFC 69.67
Visa
V
111.40
VailResorts MTN 229.33
Vale
VALE 10.10
ValeroEnergy VLO 80.67
Vantiv
VNTV 69.39
VarianMed VAR 108.24
Vedanta
VEDL 19.30
VeevaSystems VEEV 61.49
Ventas
VTR 65.39
Verizon
VZ 44.75
VistraEnergy VST 18.95
s VMware
VMW 121.84
VornadoRealty VNO 75.97
VoyaFinancial VOYA 41.04
VulcanMaterials VMC 123.99
WABCO
WBC 144.76
WEC Energy WEC 68.35
W.P.Carey WPC 71.69
Wabtec
WAB 75.26
s Wal-Mart WMT 90.99
WasteConnections WCN 70.15
WasteMgt WM 82.14
Waters
WAT 194.64
Watsco
WSO 164.38
WellCareHealth WCG 201.65
WellsFargo WFC 53.72
Welltower HCN 68.32
WestPharmSvcs WST 101.63
WestarEnergy WR 54.72
WestAllianceBcp WAL 53.75
t WesternGasEquity WGP 36.27
t WesternGasPtrs WES 44.61
WesternUnion WU 19.52
WestlakeChem WLK 93.95
-0.38
-1.84
-1.00
-0.33
-0.52
0.31
-0.48
-0.26
-0.16
-1.26
4.05
-0.07
-0.13
-0.32
-0.27
0.15
-0.04
-0.57
2.03
-0.22
0.56
0.77
1.51
-2.11
0.14
0.43
-0.15
-0.16
-0.62
0.44
1.18
0.11
-5.00
0.61
-2.22
-0.01
-0.04
-0.15
0.22
1.45
-0.10
0.20
0.39
-0.02
0.28
-0.17
-0.20
-0.22
-0.71
-0.02
1.58
-1.70
0.07
-1.04
1.59
0.05
0.40
0.02
0.04
-0.48
-2.71
0.03
-0.70
0.08
0.69
-0.56
0.02
0.48
-0.13
0.34
-0.31
0.36
0.33
-0.10
-0.93
0.95
0.70
-1.25
0.07
0.86
0.82
1.43
-0.67
1.10
-0.09
0.20
-0.02
0.95
0.33
-0.92
-1.03
-0.62
0.96
Net
Sym Close Chg
Stock
WestpacBanking WBK 24.59
WestRock WRK 58.84
Weyerhaeuser WY 35.96
WheatonPrecMetals WPM 20.21
Whirlpool WHR 161.67
Williams
WMB 28.23
WilliamsPartners WPZ 36.23
Wipro
WIT 5.09
WooriBank WF 41.50
Wyndham WYN 106.30
XPO Logistics XPO 72.48
s XcelEnergy XEL 50.79
Xerox
XRX 28.17
Xylem
XYL 66.03
YPF
YPF 23.16
YumBrands YUM 79.74
YumChina YUMC 42.13
ZTO Express ZTO 16.92
ZayoGroup ZAYO 33.99
ZimmerBiomet ZBH 111.06
Zoetis
ZTS 68.88
-0.05
0.18
-0.18
0.07
-0.38
-0.39
-0.93
0.06
-0.08
0.23
0.38
0.59
-1.00
-0.22
-0.16
0.15
0.40
-0.69
-0.03
0.31
-0.25
NASDAQ
AGNC Invt AGNC 19.82 0.27
Ansys
ANSS 150.87 0.59
ASML
ASML 178.85 -0.75
Abiomed
ABMD 195.13 -0.08
ActivisionBliz ATVI 63.62 0.62
AdobeSystems ADBE 181.85 0.13
AdvMicroDevices AMD 11.09 -0.17
AkamaiTech AKAM 53.52 -0.74
AlexionPharm ALXN 113.45 -1.72
s AlignTech ALGN 253.73 4.27
Alkermes ALKS 49.17 1.32
AlnylamPharm ALNY 129.11-10.87
Alphabet C GOOG 1025.75 -2.32
Alphabet A GOOGL 1041.20 -2.95
Altaba
AABA 70.27 -0.28
s Amazon.com AMZN 1129.17 3.82
Amdocs
DOX 62.54 0.02
Amerco
UHAL 365.43 -4.24
AmericanAirlines AAL 45.74 -0.08
Amgen
AMGN 171.50 -0.85
AnalogDevices ADI 90.03 0.44
Apple
AAPL 173.97 -0.70
AppliedMaterials AMAT 57.03 0.67
ArchCapital ACGL 95.70 0.35
Atlassian
TEAM 52.27 -0.13
Autodesk ADSK 124.64 1.53
ADP
ADP 111.53 0.44
Baidu
BIDU 237.37 -0.03
BankofOzarks OZRK 43.56 0.50
Biogen
BIIB 315.71 5.27
BioMarinPharm BMRN 81.06 -0.97
Bioverativ BIVV 53.91 0.25
bluebirdbio BLUE 154.55 2.80
BrighthouseFin BHF 55.99 -0.59
Broadcom AVGO 265.01 0.05
CA
CA 32.32 -0.13
CDK Global CDK 63.26 -0.14
CDW
CDW 67.74 0.48
CH Robinson CHRW 80.36 0.03
CME Group CME 140.15 2.27
CSX
CSX 49.75 -0.33
s CadenceDesign CDNS 44.67 0.63
CaesarsEnt CZR 12.40 -0.10
Carlyle
CG 21.18 -0.07
CboeGlobalMkts CBOE 115.74 1.29
Celgene
CELG 101.16 -1.18
CentennialRsc CDEV 20.09 -0.11
Cerner
CERN 65.47 0.16
CharterComms CHTR 343.72 5.28
CheckPointSftw CHKP102.80 0.29
ChinaLodging HTHT 128.77 2.80
CincinnatiFin CINF 73.30 -0.10
Cintas
CTAS 147.35 1.25
CiscoSystems CSCO 33.95 -0.04
CitrixSystems CTXS 84.26 0.04
s Cognex
CGNX 137.50 1.14
CognizantTech CTSH 74.56 0.30
s Coherent
COHR 301.32 -7.65
Comcast A CMCSA 37.25 0.40
CommerceBcshrs CBSH 55.84 0.66
CommScope COMM 33.94 0.15
Copart
CPRT 35.88 0.03
CoStarGroup CSGP 296.43 -0.25
Costco
COST 171.46 0.10
Ctrip.com CTRP 46.48 0.81
CypressSemi CY 16.92 -0.05
CyrusOne CONE 64.12 2.32
DISH Network DISH 50.86 0.05
DentsplySirona XRAY 65.80 0.22
35.53 1.9
27.56 0.7
3.13 -7.9
10.40 -1.4
9.23 -7.9
29.60 -1.5
0.21 -7.7
3.45 -3.5
10.35 -3.1
0.26 -1.6
2.13 -6.5
2.60 -5.7
0.64 -15.8
6.77 -1.2
4.11 -4.9
0.30 -4.6
0.81 -3.2
7.55 1.4
4.61 -4.3
4.27 -10.9
9.10 -9.0
2.35 -4.9
13.55 -4.4
34.76 0.7
0.99 -16.3
0.02 -17.3
21.76 -2.4
7.38 -6.2
1.58 -6.8
4.28 1.1
1.72 -1.1
65.72 -0.8
8.45 -3.4
35.75 -5.5
68.55 1.3
1.45 -23.5
5.82 -5.8
6.27 7.8
14.47 -1.0
1.37 -2.7
13.80 -3.1
84.13 ...
0.01 18.5
43.30 0.7
5.30 ...
6.15 -10.8
13.90 -1.7
2.19 -2.6
0.96 -4.9
0.97 -7.3
11.99 -0.7
5.25 -4.3
1.58 6.7
1.34 -0.7
0.91 -3.1
0.88 -2.9
17.03 -8.4
1.22 2.3
3.45 -2.1
1.41 -1.2
10.63 -5.3
4.01 0.2
5.09 -3.7
4.21 -3.0
18.89 -2.6
4.83 -3.9
4.11 -9.8
1.36 15.0
2.67 -1.1
137.17 -1.5
6.95 -1.7
2.42 -10.3
88.10 -0.7
2.20 9.1
4.85 -2.0
4.51 -4.1
8.10 -4.1
6.05 -2.4
7.17 -3.5
0.50 -10.5
11.90 -1.5
60.47 ...
84.33 ...
24.69 -0.3
4.04 4.9
Net
Sym Close Chg
DiamondbackEner FANG 110.97
DiscoveryComm B DISCB 23.50
DiscoveryComm A DISCA 16.99
DiscoveryComm C DISCK 15.93
DollarTree DLTR 93.69
E*TRADE ETFC 43.60
EXACT Sci EXAS 58.22
EastWestBancorp EWBC 57.03
eBay
EBAY 35.85
ElbitSystems ESLT 144.24
ElectronicArts EA 112.01
Equinix
EQIX 484.12
Ericsson
ERIC 6.01
ErieIndemnity A ERIE 121.70
Exelixis
EXEL 26.05
Expedia
EXPE 120.28
ExpeditorsIntl EXPD 59.41
ExpressScripts ESRX 60.88
F5Networks FFIV 120.85
Facebook
FB 178.77
Fastenal
FAST 47.23
FifthThirdBncp FITB 28.19
FirstSolar FSLR 61.57
Fiserv
FISV 128.16
Flex
FLEX 18.27
FlirSystems FLIR 47.11
Fortinet
FTNT 40.35
Gaming&Leisure GLPI 36.64
Garmin
GRMN 60.58
GileadSciences GILD 72.85
Goodyear GT 29.23
Grifols
GRFS 22.80
GpoFinGalicia GGAL 51.60
HD Supply HDS 34.98
Hasbro
HAS 96.83
t HenrySchein HSIC 66.50
Hologic
HOLX 40.64
JBHunt
JBHT 102.58
HuntingtonBcshs HBAN 13.36
IAC/InterActive IAC 123.67
IdexxLab
IDXX 147.79
IHSMarkit INFO 42.99
s IPG Photonics IPGP 224.69
IcahnEnterprises IEP 53.73
Icon
ICLR 113.24
Illumina
ILMN 209.14
Incyte
INCY 107.21
Intel
INTC 45.75
InteractiveBrkrs IBKR 53.90
s Intuit
INTU 154.89
IntuitiveSurgical ISRG 392.12
IonisPharma IONS 54.84
JD.com
JD 41.34
JackHenry JKHY 112.85
JazzPharma JAZZ 136.47
JetBlue
JBLU 18.95
JunoTherap JUNO 56.05
KLA Tencor KLAC 101.93
KraftHeinz KHC 79.85
LKQ
LKQ 37.22
LamResearch LRCX 209.23
LamarAdvertising LAMR 76.29
LibertyBroadbandA LBRDA 88.71
LibertyBroadbandC LBRDK 89.13
LibertyGlobal C LBTYK 28.80
LibertyGlobal A LBTYA 29.76
LibertyLiLAC C LILAK 21.78
LibertyLiLAC A LILA 21.96
LibertyQVC A QVCA 23.43
LibertyVenturesA LVNTA 56.71
LibertyFormOne C FWONK 36.78
LibertyFormOne A FWONA 35.19
LibertyBraves A BATRA 22.22
LibertyBraves C BATRK 22.29
LibertySirius A LSXMA 41.83
LibertySirius C LSXMK 41.84
LincolnElectric LECO 86.34
LogitechIntl LOGI 35.10
LogMeIn
LOGM 115.60
lululemon LULU 64.60
MKS Instrum MKSI 104.15
MarketAxess MKTX 174.52
Marriott
MAR 120.39
MarvellTech MRVL 20.13
MatchGroup MTCH 28.69
MaximIntProducts MXIM 53.46
MelcoResorts MLCO 25.13
MercadoLibre MELI 267.08
MicrochipTech MCHP 91.02
s MicronTech MU 45.60
Microsemi MSCC 52.62
Microsoft MSFT 83.93
Middleby
MIDD 109.16
-0.89
1.25
-0.20
-0.19
-1.37
0.68
-2.15
0.37
-0.12
-1.85
-0.74
1.91
...
-0.98
0.20
-0.46
-0.44
0.83
1.14
0.31
-0.36
0.52
-0.02
0.16
-0.10
0.38
0.41
-0.14
-0.25
-0.92
0.16
-0.34
-0.88
-0.69
5.38
-0.55
1.67
0.73
0.22
-0.34
0.11
0.06
1.16
-1.96
-0.57
0.20
2.45
0.17
0.02
1.59
2.97
-1.04
1.38
-0.84
-2.23
-0.04
-1.54
-0.51
0.13
0.06
1.84
1.27
0.98
0.64
0.11
0.04
-0.44
-0.20
-0.48
0.14
-0.67
-0.65
-0.42
-0.31
0.81
0.86
-0.37
-0.35
0.10
-0.27
...
1.03
0.28
...
0.23
-0.08
0.02
-3.79
-0.54
0.82
...
0.06
-0.68
Stock
Net
Sym Close Chg
Momo
MOMO 29.88 1.53
Mondelez MDLZ 42.05 0.10
s MonsterBeverage MNST 62.20 1.04
Mylan
MYL 37.57 -0.59
NXP Semi NXPI 115.65 -0.40
Nasdaq
NDAQ 75.41 1.84
NatlInstruments NATI 44.65 -0.26
NetApp
NTAP 46.00 -0.34
Netease
NTES 302.16 -0.71
Netflix
NFLX 195.08 3.06
Neurocrine NBIX 74.64 -0.82
NewsCorp B NWS 15.60 0.05
NewsCorp A NWSA 15.23 0.13
Nordson
NDSN 123.81 -0.06
NorthernTrust NTRS 92.46 -0.05
NorwegianCruise NCLH 55.27 0.04
NVIDIA
NVDA 212.63 -3.51
OReillyAuto ORLY 214.17 -0.26
OldDomFreight ODFL 118.24 -0.66
ON Semi
ON 21.58 0.02
OpenText OTEX 33.41 -0.01
PTC
PTC 64.58 -0.21
Paccar
PCAR 69.32 -0.02
PacWestBancorp PACW 45.20 0.50
Paychex
PAYX 65.10 0.53
PayPal
PYPL 74.03 0.04
People'sUtdFin PBCT 18.21 0.50
PilgrimPride PPC 34.04 -0.49
Priceline
PCLN 1722.15 24.90
Qiagen
QGEN 30.77 -0.77
Qorvo
QRVO 79.08 -0.49
Qualcomm QCOM 66.49 1.92
RandgoldRscs GOLD 90.57 0.02
RegenPharm REGN 393.62-10.92
RossStores ROST 64.91 -0.85
RoyalGold RGLD 86.39 0.78
Ryanair
RYAAY 111.41 0.16
SBA Comm SBAC 165.20 -3.75
SEI Investments SEIC 64.67 -0.01
Sina
SINA 106.15 0.31
SS&C Tech SSNC 39.81 -0.05
SVB Fin
SIVB 212.26 3.38
ScrippsNetworks SNI 78.88 -0.30
Seagate
STX 37.66 -0.33
SeattleGenetics SGEN 57.12 -0.84
t Shire
SHPG 138.32 -2.04
SignatureBank SBNY 127.19 2.26
SiriusXM
SIRI 5.50 0.16
Skyworks SWKS 110.30 -0.11
Splunk
SPLK 67.74 -2.00
Starbucks SBUX 56.64 -0.40
SteelDynamics STLD 37.35 0.12
Symantec SYMC 27.97 -0.39
s Synopsys SNPS 87.82 0.54
TD Ameritrade AMTD 49.72 0.86
T-MobileUS TMUS 56.44 -0.36
TRowePrice TROW 93.41 -0.16
TakeTwoSoftware TTWO 118.26 2.58
Tesla
TSLA 315.40 12.41
TexasInstruments TXN 97.03 0.09
TractorSupply TSCO 61.33 -1.34
Trimble
TRMB 40.99 0.62
21stCenturyFoxB FOX 27.82 -0.25
21stCenturyFoxA FOXA 28.55 -0.29
UltaBeauty ULTA 198.03 -2.73
UltimateSoftware ULTI 198.00 -0.40
s UniversalDisplay OLED 177.05 1.15
VEON
VEON 3.72
...
s VeriSign
VRSN 111.18 1.43
VeriskAnalytics VRSK 90.12 -0.09
VertxPharm VRTX 148.03 -0.71
Viacom B VIAB 24.72 -0.17
Viacom A VIA 30.15 -0.45
Vodafone
VOD 28.85 -0.50
WPP
WPPGY 84.82 -1.48
WalgreensBoots WBA 70.37 -0.62
Weibo
WB 108.58 3.42
WesternDigital WDC 88.44 -0.48
WillisTwrsWatson WLTW 161.49 -0.08
Workday
WDAY 106.17 -1.14
s WynnResorts WYNN 155.24 1.21
Xilinx
XLNX 72.33 0.46
Yandex
YNDX 31.62 0.63
Zillow C
Z
39.12 -0.42
Zillow A
ZG 39.20 -0.54
ZionsBancorp ZION 45.43 1.50
NYSE AMER
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil IMO
49.28
27.71
26.40
31.62
-0.47
-0.33
-0.42
-0.41
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
Monday, November 13, 2017
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFEETF
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500ETF
iShCoreS&PMdCp
iShCoreS&PSmCpETF
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCIACWIETF
iShMSCIBrazilCap
iShMSCI EAFE
iShMSCIEAFESC
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
SCZ
10.33
92.68
54.59
69.26
26.12
97.05
81.28
70.82
109.26
104.87
122.73
64.63
55.78
61.78
260.10
182.59
73.48
59.10
108.99
95.22
71.24
51.75
12.28
119.91
87.05
114.58
106.52
70.28
38.95
68.99
61.97
–2.18 –18.0
0.34 13.9
5.6
0.57
–0.57 –8.0
0.15 12.3
0.15 12.0
0.10 17.9
–0.34 13.8
1.0
–0.08
–0.07 –0.1
0.2
–0.08
–0.43 20.5
–0.20 31.4
–0.42 22.4
0.11 15.6
0.23 10.4
6.9
0.18
0.10 15.2
0.9
...
7.5
0.34
–0.45 16.4
0.33 14.4
0.16 10.8
2.3
0.02
0.6
–0.07
4.0
0.11
0.2
0.02
–0.14 18.8
0.31 16.8
–0.42 19.5
–0.67 24.3
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShMSCIEmgMarkets
iShMSCIEurozoneETF
iShMSCIJapanETF
iShNasdaqBiotech
iShNatlMuniBdETF
iShRussell1000Gwth
iShRussell1000ETF
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000ETF
iShRussell2000Val
iShRussell3000ETF
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500ValueETF
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDRBloomBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
Explanatory Notes
–0.22
–0.37
–0.44
–0.67
...
0.15
0.09
0.11
–0.05
0.03
0.02
0.07
0.21
0.27
0.20
0.10
0.09
0.05
–0.01
–0.01
–0.05
0.21
0.09
0.04
0.12
0.38
...
–0.11
0.15
–0.29
0.11
0.11
0.10
46.19
42.91
58.82
310.08
110.74
131.01
143.71
119.48
178.59
146.61
121.67
152.85
200.98
85.96
208.86
149.52
109.03
38.21
113.70
84.13
105.78
124.36
116.33
101.77
153.87
47.13
23.03
36.64
121.31
33.86
62.39
61.73
234.66
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Fund
NAV Chg %Ret Fund
A
American Century Inv
Ultra
45.11 +0.01
American Funds Cl A
31.84 +0.02
AmcpA p
AMutlA p 41.17 +0.03
27.44 +0.02
BalA p
12.90
...
BondA p
62.73 -0.12
CapIBA p
CapWGrA 52.22 -0.06
56.83 -0.15
EupacA p
63.50 -0.03
FdInvA p
GwthA p
51.54 +0.03
10.37 -0.01
HI TrA p
41.13 -0.06
ICAA p
IncoA p
23.35
...
44.88 +0.02
N PerA p
47.66 +0.10
NEcoA p
NwWrldA 66.36 -0.10
SmCpA p
56.05 -0.13
13.03
...
TxExA p
45.32 +0.01
WshA p
TotRetBdI
29.3
18.6
13.4
12.3
3.0
11.5
21.0
28.6
18.8
22.6
5.9
14.8
10.1
27.0
32.6
29.0
21.9
5.0
14.9
B
10.87 +0.01
11.22
...
BlackRock Funds A
GlblAlloc p 20.22 -0.05
BlackRock Funds Inst
EqtyDivd
22.98 +0.01
20.35 -0.05
GlblAlloc
7.78 -0.01
HiYldBd
StratIncOpptyIns 9.93
...
Bridge Builder Trust
NA
...
CoreBond
3.7
4.0
11.2
12.6
11.5
6.9
4.0
NA
D
Dimensional Fds
5GlbFxdInc 11.01 -0.01
EmgMktVa 30.03 -0.19
EmMktCorEq 22.33 -0.09
IntlCoreEq 14.09 -0.08
19.86 -0.11
IntlVal
IntSmCo
21.19 -0.17
23.08 -0.20
IntSmVa
US CoreEq1 21.98 +0.01
US CoreEq2 20.83 +0.01
35.70 -0.01
US Small
US SmCpVal 37.96 -0.09
US TgdVal 24.74 -0.04
38.88 +0.05
USLgVa
Dodge & Cox
Balanced 108.46 -0.15
GblStock
13.79 -0.05
13.80
...
Income
45.84 -0.25
Intl Stk
Stock
200.14 -0.40
DoubleLine Funds
Net YTD
NAV Chg %Ret
NA
... NA FrankTemp/Franklin A
7.48
...
CA TF A p
...
Fed TF A p 11.98
NA
...
IncomeA
p
Edgewood Growth Instituti
EdgewoodGrInst 29.53 +0.06 33.0 RisDv A p 60.76 +0.07
FrankTemp/Franklin C
NA
...
Income C t
FrankTemp/Temp A
Federated Instl
NA
...
GlBond A p
... 11.4 Growth A p
StraValDivIS 6.40
NA
...
Fidelity
FrankTemp/Temp Adv
500IdxInst 90.55 +0.09 17.4 GlBondAdv p NA
...
500IdxInstPrem 90.55 +0.09 17.4
500IdxPrem 90.55 +0.09 17.4
ExtMktIdxPrem r 62.18 +0.03 13.3
IntlIdxPrem r 42.87 -0.21 21.5 Harbor Funds
SAIUSLgCpIndxFd 13.88 +0.01 17.4 CapApInst 76.21 +0.12
69.17 -0.36
r
TMktIdxF r 74.97 +0.06 16.7 IntlInst
Harding Loevner
TMktIdxPrem 74.96 +0.07 16.7 IntlEq
NA
...
USBdIdxInstPrem 11.57 +0.01 3.0
Fidelity Advisor I
NwInsghtI 33.39 +0.06 25.0
Invesco Funds A
Fidelity Freedom
11.23
...
16.69 -0.01 13.1 EqIncA
FF2020
FF2025
14.44 -0.01 14.1
FF2030
18.08 -0.02 16.4
Freedom2020 K 16.69 -0.01 NS John Hancock Class 1
15.92 -0.01
Freedom2025 K 14.44 -0.01 NS LSBalncd
17.09 -0.01
Freedom2030 K 18.09 -0.02 NS LSGwth
Freedom2035 K 15.17 -0.02 NS John Hancock Instl
23.95 +0.03
DispValMCI
Freedom2040 K 10.66 -0.01 NS
JPMorgan Funds
Fidelity Invest
39.68 +0.06
MdCpVal
L
23.67 +0.02 14.1
Balanc
88.00 +0.04 33.3 JPMorgan R Class
BluCh
11.62
...
CoreBond
126.88 +0.23 29.7
Contra
ContraK
126.88 +0.23 29.8
CpInc r
10.24
... 10.1
41.08 -0.22 23.4 Lazard Instl
DivIntl
183.34 -0.09 34.0 EmgMktEq 19.50 -0.07
GroCo
GrowCoK 183.30 -0.09 34.2 Loomis Sayles Fds
14.14
...
7.91
... 3.4 LSBondI
InvGB
InvGrBd
11.26
... 3.8 Lord Abbett A
4.27
...
ShtDurIncmA
p
LowP r
52.56 -0.17 14.7
LowPriStkK r 52.52 -0.18 14.8 Lord Abbett F
4.26
...
ShtDurIncm
106.17 +0.21 23.0
MagIn
109.14 +0.29 37.0
OTC
23.16 +0.01 16.1
Puritn
SrsEmrgMkt 21.45 -0.04 36.6 Metropolitan West
10.64
...
SrsGroCoRetail 17.99 -0.02 34.7 TotRetBd
...
SrsIntlGrw 16.17 -0.03 26.3 TotRetBdI 10.64
10.01
...
10.74 -0.05 17.2 TRBdPlan
SrsIntlVal
... 3.6 MFS Funds Class I
TotalBond 10.64
40.33 +0.04
ValueI
Fidelity Selects
Biotech r 214.32 -2.39 23.1 MFS Funds Instl
25.24 -0.08
IntlEq
First Eagle Funds
60.40 -0.06 11.3 Mutual Series
GlbA
NA
...
GlbDiscA
FPA Funds
34.82
... 8.0
FPACres
FrankTemp/Frank Adv
NA
... NA Oakmark Funds Invest
IncomeAdv
E
F
5.6
3.3
NA
16.4
NA
NA
NA
NA
H
34.5
18.4
NA
I
7.5
J
Baird Funds
AggBdInst
CorBdInst
NAV Chg %Ret Fund
2.1
27.1
30.5
23.0
21.2
23.9
22.0
15.4
13.2
6.2
2.0
3.9
12.4
8.4
15.8
3.8
20.3
11.7
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
L
M
O
12.8
16.3
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
Net YTD
NAV Chg %Ret Fund
EqtyInc r
Oakmark
OakmrkInt
Data provided by
Monday, November 13, 2017
Net YTD
31.9
24.0
20.4
16.8
2.4
24.9
15.5
6.7
16.0
8.7
2.3
14.9
12.4
6.9
14.6
22.8
7.5
2.7
0.5
–0.4
0.9
4.4
19.4
0.4
29.9
13.3
–1.4
0.5
10.7
22.3
15.2
15.9
18.8
Fund
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of
at least $500 million each. NAV is net asset value. Percentage performance figures
are total returns, assuming reinvestment of all distributions and after subtracting
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees.
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date
return. 3-YR%RET is trailing three-year return annualized.
Net YTD
Closing Chg YTD
Symbol Price (%) (%)
ETF
Nasdaq lows - 85 Mutual Funds | WSJ.com/fundresearch
AcaciaComms ACIA
AcadiaHealthcare ACHC
Amedica
AMDA
AmCapSeniorFloat ACSF
AmTrustFinSvcs AFSI
Andersons
ANDE
AppliedDNASciWt APDNW
AquaMetals
AQMS
AquinoxPharm AQXP
ArcadiaBiosci RKDA
Atlanticus
ATLC
AzurRxBioPharma AZRX
Biocept
BIOC
BlackRockCapInvt BKCC
CHF Solutions CHFS
CMSevenStarAcqnRt CMSSR
CPI Card
PMTS
CapitalaFinance CPTA
CheckpointTherap CKPT
Chimerix
CMRX
CoherusBioSci CHRS
Compugen
CGEN
ConsldComm CNSL
Criteo
CRTO
Curis
CRIS
CytoriTherapWt CYTXW
DBVTechnologies DBVT
FTD
FTD
FibrocellScience FCSC
ForwardPharma FWP
GlobalEagle
ENT
HenrySchein
HSIC
HoughtonMifflin HMHC
INC Research INCR
Iberiabank
IBKC
IdealPower
IPWR
Immersion
IMMR
Infinera
INFN
InflaRx
IFRX
InfoSonics
IFON
iShMSCIQatarCapped QAT
iSh1-3YTreasuryBd SHY
JasonIndustriesWt JASNW
LifePointHealth LPNT
LiquiditySvcs LQDT
MaidenHoldings MHLD
MartinMidstream MMLP
MeetGroup
MEET
Neonode
NEON
Neuralstem
CUR
OFSCapital
OFS
OPKOHealth
OPK
OrexigenTherap OREX
ParkerVision
PRKR
PAVmedWt
PAVMW
PerionNetwork PERI
PetIQ
PETQ
Precipio
PRPO
ProQR Therap PRQR
ProteostasisTher PTI
RISE Education REDU
RamacoRscs
METC
RedHillBio
RDHL
RevolutionLight RVLT
SabraHealthcare SBRA
SalemMedia
SALM
SearsHoldings SHLD
SequentialBrands SQBG
ServiceSource SREV
Shire
SHPG
SonusNetworks SONS
SynergyPharm SGYP
TESARO
TSRO
Tecogen
TGEN
TeleNav
TNAV
TherapixBiosci TRPX
TileShop
TTS
Travelzoo
TZOO
trivago
TRVG
TurtleBeach
HEAR
VandaPharm VNDA
VangdSTGovBd VGSH
VangdTotalCpBd VTC
VicShEMHiDivVol CEY
Ziopharm
ZIOP
Stock
33.86 +0.01
84.56 -0.10
28.51 -0.14
Old Westbury Fds
14.86 -0.02
LrgCpStr
Oppenheimer Y
NA
...
DevMktY
IntGrowY
42.56 -0.27
P
Parnassus Fds
44.25 +0.16
ParnEqFd
PIMCO Fds Instl
NA
...
AllAsset
10.25 -0.01
TotRt
PIMCO Funds A
NA
...
IncomeFd
PIMCO Funds D
NA
...
IncomeFd
PIMCO Funds Instl
NA
...
IncomeFd
PIMCO Funds P
IncomeP
NA
...
Price Funds
97.24 +0.17
BlChip
29.69 +0.02
CapApp
34.71 +0.03
EqInc
69.52 +0.06
EqIndex
Growth
70.23 +0.12
HelSci
NA
...
InstlCapG
39.59 +0.04
19.13 -0.07
IntlStk
15.08 -0.07
IntlValEq
91.54 +0.11
MCapGro
31.39 +0.06
MCapVal
NA
...
N Horiz
N Inc
9.47
...
OverS SF r 11.27 -0.05
NA
...
R2020
NA
...
R2025
NA
...
R2030
NA
...
R2035
R2040
NA
...
Value
38.75 +0.09
PRIMECAP Odyssey Fds
36.01 +0.14
Growth r
Principal Investors
DivIntlInst 13.82 -0.07
Prudential Cl Z & I
NA
...
TRBdZ
11.6
S
3.4
T
Schwab Funds
40.42 +0.05
9.0 S&P Sel
TIAA/CREF Funds
19.35 +0.01
EqIdxInst
IntlEqIdxInst 20.14 -0.08
22.8 Tweedy Browne Fds
28.27 -0.06
GblValue
6.7
V
2.3 VANGUARD ADMIRAL
500Adml 239.10 +0.24
2.3 BalAdml
34.04 +0.02
CAITAdml 11.81 -0.01
CapOpAdml r154.43 +0.06
37.03 -0.12
EMAdmr
2.6 EqIncAdml 76.22 +0.07
2.9 ExtndAdml 81.67 +0.03
3.0 GNMAAdml 10.49
...
GrwthAdml 70.94 +0.08
12.5 HlthCareAdml r 88.13 -0.04
HYCorAdml r 5.90 -0.01
24.6 InfProAd
25.76
...
IntlGrAdml 94.15 +0.01
NA ITBondAdml 11.38
...
ITIGradeAdml 9.77 -0.01
LTGradeAdml 10.53 +0.02
MidCpAdml 184.86 +0.42
332.86
258.33
92.68
63.48
56.17
22.56
164.77
127.54
155.56
97.29
43.87
44.50
57.37
53.44
137.85
151.20
82.62
83.96
87.19
118.63
149.26
106.49
85.36
237.32
79.41
79.63
142.38
81.43
54.82
55.48
132.61
72.14
101.66
64.67
57.94
31.79
0.19
0.09
0.26
–0.03
1.19
0.18
–0.02
0.07
0.01
0.20
–0.39
–0.20
–0.54
–0.41
0.13
0.07
0.12
–0.05
–0.07
0.10
0.21
0.31
0.51
0.12
–0.05
–0.01
0.01
0.01
0.02
–0.45
0.05
–0.15
0.10
–0.40
–0.38
–0.19
10.3
15.6
8.3
31.3
15.6
7.8
35.6
5.4
16.8
14.2
20.1
24.4
19.7
21.0
23.7
19.3
9.0
1.1
1.7
15.9
13.4
9.6
3.4
15.6
–0.1
0.3
10.4
0.8
1.0
20.9
15.0
18.3
9.3
12.7
17.0
13.3
Net YTD
NAV Chg %Ret
11.3 MuHYAdml 11.42 -0.01
16.7 MuIntAdml 14.17 -0.01
25.6 MuLTAdml 11.69 -0.01
...
MuLtdAdml 10.95
...
15.8 MuShtAdml 15.77
PrmcpAdml r135.53 +0.24
NA REITAdml r 120.91 +0.60
22.7 SmCapAdml 68.24 +0.03
STBondAdml 10.41 -0.01
STIGradeAdml 10.66 -0.01
...
TotBdAdml 10.74
...
13.6 TotIntBdIdxAdm 21.91
TotIntlAdmIdx r 29.79 -0.13
64.56
+0.06
TotStAdml
NA
14.09 -0.06
4.6 TxMIn r
39.65 +0.04
ValAdml
NA WdsrllAdml 68.72 -0.11
WellsIAdml 65.15 +0.04
NA WelltnAdml 73.59 +0.02
WndsrAdml 78.94 +0.04
NA VANGUARD FDS
26.41 +0.03
DivdGro
NA HlthCare r 208.89 -0.10
INSTTRF2020 22.48 -0.02
33.9 INSTTRF2025 22.75 -0.01
13.4 INSTTRF2030 22.94 -0.01
11.8 INSTTRF2035 23.14 -0.01
17.2 INSTTRF2040 23.33 -0.02
31.9 INSTTRF2045 23.47 -0.02
39.16 -0.20
NA IntlVal
33.07 -0.03
35.4 LifeGro
LifeMod
26.87 -0.02
25.1
26.78 +0.03
17.7 PrmcpCor
SelValu
r
33.02 -0.08
21.5
27.10 -0.01
8.0 STAR
STIGrade
10.66 -0.01
NA
3.4 TgtRe2015 15.89 -0.01
TgtRe2020
31.54 -0.02
24.3
NA TgtRe2025 18.49 -0.01
TgtRe2030
33.40 -0.02
NA
NA TgtRe2035 20.52 -0.01
TgtRe2040
35.33 -0.03
NA
NA TgtRe2045 22.19 -0.02
TgtRe2050
35.70 -0.03
15.2
13.56
...
TgtRetInc
TotIntBdIxInv
10.96
...
25.7
26.89 +0.02
WellsI
Welltn
42.61
+0.01
25.6
38.72 -0.06
WndsrII
NA VANGUARD INDEX FDS
239.06 +0.23
500
ExtndIstPl 201.54 +0.08
SmValAdml 54.80 +0.04
TotBd2
10.70
...
17.4 TotIntl
17.81 -0.07
64.53 +0.06
TotSt
VANGUARD INSTL FDS
34.05 +0.02
BalInst
16.6 DevMktsIndInst 14.11 -0.06
21.7 DevMktsInxInst 22.06 -0.09
81.67 +0.04
ExtndInst
12.9 GrwthInst
70.95 +0.09
10.50 +0.01
InPrSeIn
235.89 +0.23
InstIdx
235.92 +0.24
InstPlus
17.4 InstTStPlus 57.91 +0.05
11.1 MidCpInst 40.84 +0.10
4.8 MidCpIstPl 201.41 +0.47
24.3 SmCapInst 68.24 +0.03
26.8 STIGradeInst 10.66 -0.01
10.74
...
13.7 TotBdInst
...
13.3 TotBdInst2 10.70
...
1.9 TotBdInstPl 10.74
...
24.9 TotIntBdIdxInst 32.88
16.3 TotIntlInstIdx r119.14 -0.50
119.17
-0.49
TotItlInstPlId
r
6.0
64.57 +0.06
2.0 TotStInst
39.65 +0.04
39.8 ValueInst
3.6
3.9
8.5 Western Asset
14.6 CorePlusBdI
NA
...
7.2
4.5
5.9
2.4
1.3
24.5
6.3
11.5
1.2
2.1
3.1
2.0
23.3
16.7
22.4
11.5
11.3
7.9
11.2
15.0
14.4
16.2
11.6
13.1
14.4
15.7
17.0
17.5
23.3
15.7
12.4
20.7
14.7
15.2
2.0
9.5
11.6
13.1
14.4
15.7
16.9
17.5
17.5
7.1
2.0
7.8
11.1
11.3
17.3
13.3
6.7
3.0
23.2
16.6
11.1
22.5
22.5
13.3
24.9
2.1
17.4
17.4
16.6
14.6
14.6
11.5
2.1
3.1
3.0
3.1
2.0
23.3
23.4
16.7
11.5
W
NA
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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Tuesday, November 14, 2017 | B9
THE WALL STREET JOURNAL.
BANKING & FINANCE
Citigroup’s Credit Card Plans Hit Snag
Bank’s stock is up 22%
this year, but cracks in
a crucial unit stand to
complicate the picture
BY TELIS DEMOS
AND ANNAMARIA ANDRIOTIS
One of the bright spots in
Citigroup Inc.’s turnaround
strategy is starting to lose a
little luster.
For years, the New Yorkbased bank has steadily expanded its card business,
boosting loans and investing
heavily despite problems elsewhere that ranged from headaches in Mexico to regulatory
problems that lingered after
the financial crisis.
But now, some cracks in the
card business have emerged,
raising questions just as Chief
Executive Michael Corbat has
shored up the bank’s other issues.
This summer, the bank lowered its return-on-asset projection for Citi-branded credit
cards to at least 2.15% from
2.25%. The seemingly narrow
slice of one part of Citigroup’s
sprawling empire is getting a
lot of attention, in part because credit cards have been a
crucial business for a bank
that has spent much of its efforts getting smaller and simpler.
Citigroup is the largest card
lender globally by some measures and is the second-biggest in the U.S. by balances,
according to industry tracker
the Nilson Report, even as it
has cut hundreds of U.S.
branches since the financial
crisis.
Among the factors pressuring the business are more activity on cards that don’t tend
to generate as much lending
income and consumers’ increasing demand for rewards. “It’s clear that the
company has gotten off to a
slower-than-expected start” on
meeting card-growth goals,
Compass Point analyst Charles
Peabody wrote in a note.
The worries contrast with
an overall rise in investor expectations. Citigroup’s stock
has risen 22% in 2017, the
highest gain among the big
U.S. banks. Mr. Corbat has declared restructuring at the
Profit Pinch
Citigroup credit-card net income*
$700 million
Credit cards as a percentage
of total lending†
Citigroup
600
24%
Quarterly
500
J.P. Morgan
400
15%
300
Bank of America
200
10%
100
Wells Fargo
0
2014 ’15
’16
4%
’17
*Citi-branded cards, North America †As of Sept. 30.
Source: the companies
once-troubled bank over, and
in July, it unveiled a plan to
return more than $60 billion
in capital to shareholders by
2020 through dividends and
share buybacks.
To sustain that momentum,
the bank has made consumer
cards a priority. Today, cards
make up 24% of Citigroup’s total lending—a far bigger share
than its rival big banks, including J.P. Morgan Chase &
Co. and Bank of America
Corp., which remain focused
THE WALL STREET JOURNAL.
on mass-market retail banking.
While revenue and profits
in the U.S. branded-card business haven’t taken off in recent years, the bank’s aim was
for its investments to start
paying off in the second half
of this year. However, in the
third quarter, North American
revenue from Citi-branded
cards fell 1% from a year ago.
The bank did increase the
unit’s revenue from the second
quarter to the third quarter.
Its results compare with a July
forecast for 3% annual revenue
growth through 2020 in the
unit.
In October, Chief Financial
Officer John Gerspach told analysts that “we are seeing
slower-than-anticipated revenue growth,” due largely to increases in “the competitive
dynamics in the rewards offerings in the U.S.” The bank also
has noted heavy volume in
card partnerships with big
merchants, which has resulted
in cards that people tend to
use for spending rather than
borrowing.
Still,
Citigroup
didn’t
change its longer-term growth
or return forecasts for the
branded-card business. Citigroup has sought to boost
growth in part by promoting
no-interest card borrowing, a
tactic that it has long used.
Over the past three years
through September, the bank
has mailed about 1.9 billion offers in the U.S. for credit cards
with zero-percent interest for
a promotional period, according to market research firm
Mintel Group Ltd.
The maneuvers have helped
BNY
Mellon
Picks CFO
Egypt Draws Investors in Search of Yield
BY IRA IOSEBASHVILI
STREET
Continued from page B1
age lower than their larger
brethren for otherwise identical companies, and so future
returns higher.
Since the effect was documented by academics in the
early 1980s, smaller companies
have stopped beating the market. It looks as though CEOs
and founders took notice and
changed strategy to avoid the
higher financing costs that
came from being a small company on the stock market.
More listed companies chose
to sell to rivals to get bigger,
and fewer opted for IPOs in the
first place.
The result is that the average listed company is far bigger
than it was, and there are far
fewer very small companies,
data from René Stulz, director
of the Dice Center for Research
in Financial Economics at
Ohio State University, show.
Since 1997, on average 5.6%
of listed companies have been
bought each year, against just
3.9% in the previous two de-
BY JUSTIN BAER
MOHAMED ABD EL GHANY/REUTERS
One of the most popular
emerging-market trades is in a
Middle Eastern currency that
was shunned by investors just
a year ago.
Large bond-fund managers
such as T. Rowe Price Group
Inc. and J.P. Morgan Chase &
Co. and other investors have
poured money into Egyptian
government debt this year, following a sharp drop in the
Egyptian pound that made the
debt more attractive to foreign buyers. About 60% of the
70 local-currency bond funds
tracked by data group eVestment held Egyptian debt at
the end of the third quarter,
compared with virtually none
at the same time last year.
A buyer of government
bonds denominated in the
Egyptian pound can collect
around 18% annually on the
country’s three-month treasury bill as of late last week,
due to moves by Egypt’s central bank, which has increased
interest rates sharply over the
past year. By comparison, the
yield on a three-month U.S.
Treasury bill was 1.213% as of
Monday.
The rush to own Egypt’s
bonds, rated six notches below
investment grade by Moody’s
Investors Service, shows how
far investors will go to harvest
returns in a world where
yields in developed markets
remain near historic lows.
“Egypt is one of those idiosyncratic stories that everyone
is very desperate for these
days,” said Denise Prime, comanager of the emerging-market bond strategy at GAM UK
Ltd. Her fund holds Egypt’s
debt, which it purchased at
the beginning of 2017.
But some investors fear the
trade could reverse suddenly
for a variety of reasons, including any rise in political instability, faster-than-expected
tightening by major central
banks or other developments
that could dent appetite for
the bank maintain and expand
its vast card business. Citigroup in 2015 outbid American
Express Co. to win the rights
to issue credit cards for shoppers at retail giant Costco
Wholesale Corp., adding millions of new accounts and
more than $10 billion in loans.
But giving up interest for a
period has been costly, especially during a period of rising
interest rates that ordinarily
would boost the bank’s lending revenue. The bank’s aim
has long been to dial back
these offers, increase interest
income and lean on other enticements such as its mobile
application features or rewards points.
Under global cards head
Jud Linville, who joined Citigroup in 2010 from American
Express, the bank has invested
to boost cards’ appeal. It introduced new proprietary
cards such as the Double Cash
card, made it easier to spend
rewards points online and is
adding new mobile functions
this year. The goal is “building
huge engagement with our
customers,” Mr. Linville said in
an interview earlier this year.
Egypt’s central bank has raised key interest rates by 7 percentage points in the past year. A Cairo open-air market is seen here.
Bank of New York Mellon
Corp. reshuffled its management Monday as a first step in
new Chief Executive Charles
Scharf’s bid to put his stamp
on the custody bank.
BNY Mellon said it named
Michael Santomassimo the
bank’s finance chief, succeeding Thomas Gibbons. BNY
Mellon also divided up its
largest business among three
managers, including Mr. Gibbons. The restructuring will
trigger the exit of Brian Shea,
a 34-year company veteran
who had overseen some 75%
of the firm’s operations.
Mr. Gibbons, who served as
BNY Mellon’s CFO for the past
nine years, will slide over to a
new role running a cluster of
businesses, including clearing,
trading and treasury services,
the bank said Monday. The
bank also appointed Hani Kablawi as CEO of asset servicing
and chairman of Europe, the
Middle East and Africa. Francis La Salla was named CEO of
issuer services.
A familiar name on Wall
Street for his previous roles at
Visa Inc. and J.P. Morgan
Chase & Co., Mr. Scharf succeeded longtime BNY Mellon
chief Gerald Hassell in July.
The changes eliminate a layer
of management between the
new CEO and the businesses
that make up BNY Mellon’s
core servicing arm.
“When your senior management is a step closer to the
businesses, you’re closer to
clients,” Mr. Scharf said Monday.
BNY Mellon also added five
managers, including Messrs.
Santomassimo, Kablawi and La
Salla, to its executive committee. The bank also said it
would add a head of digital to
help lead its technology push.
risky investments.
Because Egyptian bonds are
thinly traded, any bad news
that causes many investors to
sell at once could overwhelm
the market and cause prices to
plunge.
“The trade is a little bit exhausted,” said Jan Dehn, head
of research at Ashmore Group,
which owned Egypt’s local
currency bonds earlier this
year. “I think it’s on its last
legs.” Mr. Dehn declined to say
whether his firm still had a
position in the bonds.
Some money managers
have been happy to take profits. Jim Barrineau, co-head of
emerging-market debt at
Schroders, said concerns over
high inflation pushed him recently to sell Egyptian localcurrency bonds his firm had
invested in earlier this year.
Inflation stood above 30% at
the end of October.
“It was a very good trade,”
Mr. Barrineau said. “Better to
sell now than…when everyone
is trying to get out at once.”
Investors began looking at
the pound after the currency
plummeted 50% following the
decision by Egypt’s central
bank in November 2016 to
scrap a peg of 8.8 pounds to
the U.S. dollar ahead of a $12
billion loan from the International Monetary Fund.
To support the pound and
combat inflation, the central
bank has raised key interest
rates by 7 percentage points
over the past year, making
Egypt’s local debt more attractive to yield-hungry foreign
money managers.
The country’s newly flexible
exchange rate, fiscal deficit reductions and other changes
won praise from the IMF,
which has already disbursed
two tranches of its loan, totaling some $4 billion.
Egypt’s improving macroeconomic fundamentals and
sky-high interest rates made it
a tempting proposition for
money managers.
Foreign capital flows to
Egypt hit a record of $21.1 billion in the first half of this
year, compared with $7.4 billion in the first half of 2016,
data from the Institute of International Finance show.
S&P Global Ratings on Friday revised its outlook on
Egypt to positive from stable,
citing a strengthening economy and the country’s growing foreign-exchange reserves,
which rose to $36.7 billion in
October from $19 billion a
year earlier.
Many investors have taken
comfort in the central bank’s
guarantee to exchange Egyptian pounds for foreign currency for investors looking to
cash out, regardless of liquidity conditions.
Persistent dollar shortages
in past years have occasionally
made it difficult for money
managers to repatriate profits
from the country. Egyptian officials have kept the guarantee
in place despite an IMF recommendation to phase out the
program, as it plays an important role in attracting foreign
capital, the IMF said in a report.
“One of the things we
wanted to know was whether
we can get our dollars back,”
said Colm McDonagh, head of
emerging-markets fixed income at U.K.-based Insight Investment. He said his firm
holds Egyptian bonds, which it
purchased in February.
cades, a rate that is also much
higher than the rest of the
world. If big companies can
raise equity more cheaply—that
is, investors are willing to pay
more and so accept a lower future return than on small companies—it makes sense to
merge to get bigger.
World-wide, though, IPOs
remain a popular option.
More than 1,450 companies
globally have gone public so
far in 2017, putting this year
on track to become the busiest for new listings since
2007, according to Dealogic
data through Friday. Roughly
two-thirds of the IPOs were
in the Asia-Pacific region,
which has roared past the
U.S. to become the dominant
region for new stock listings.
CEOs and CFOs should know
more about their company’s
prospects than outsiders, so if
they have a choice of ways to
finance, the one they pick is
probably offering a better deal.
But the asset class offering the
best deal to the company is
also the one offering the worst
deal to the investor.
Plenty of other factors affect
return, but if lots of companies
choose to finance via IPOs—as
in the late 1990s—then stocks
are probably overvalued. If
they mostly choose to finance
via debt—as they did before
the subprime crisis—then debt
is probably overvalued. For the
past few years, bonds have been
popular again, suggesting that
for the investor, debt is even
more expensive than stocks.
If companies choose to
stay private longer than they
did, it is because they can get
cheaper money privately. And
cheaper equity for companies
means lower returns for the
private-equity investor.
The Incredible Shrinking Stock Market
If big companies can
raise equity more
cheaply, it makes
sense to merge.
Takeovers aren’t the full
story, though. In the past two
decades, money has flooded
into venture capital and private
equity, with buyout funds now
sitting on a record $954 billion
available for deals, according
to Preqin data.
T
he small-company CEO
can choose between an
IPO and selling to private funds—and private money
is more easily available than
ever before. Why bother to list?
M
arkets working better
is good for the economy, but monopoly
power isn’t. Big companies
have become more dominant,
helped by complex intellectualproperty law and regulations
that make life tough for new
entrants, by the network effects of new technology, by
cheaper financing and, some
critics allege, by lax antitrust
enforcement. Studies show big
companies tend to be less innovative and invest less in research, which ultimately hurts
growth. Cheap venture finance
is great for innovation, but the
link from the IPO drought to
oligopoly is visible in the Silicon Valley startup: Where once
they fantasized about ringing
the NYSE bell after listing, now
their aim is to sell out to Alphabet or Amazon.
Fewer companies are listed in
the U.S. than in 1975...
...and the proportion of very
small companies* has collapsed.
8,000
60%
7,000
50
6,000
40
5,000
30
4,000
20
3,000
10
1980
’90
2000 ’10
1980
’90
2000
’10
Smaller companies used to beat the market, but haven't
outperformed since the early 1980s.†
600%
500
400
300
200
100
0
–100
1930
’40
’50
’60
’70
’80
’90
2000
’10
*Worth less than $100 million, inflation-adjusted †Performance of long-short porfolio
Source: Prof René Stulz, Ohio State University (total companies, proportion of small
companies); Kenneth French Data Library (performance)
THE WALL STREET JOURNAL.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B10 | Tuesday, November 14, 2017
THE WALL STREET JOURNAL.
* ***
MARKETS
Bitcoin Loses 25% in Latest Wild Swing
BY STEVEN RUSSOLILLO
AND PAUL VIGNA
The booming bull market
for bitcoin has hit another
speed bump.
Bitcoin slumped more than
25% in recent days, falling below $6,000 after touching a
record just shy of $7,900 last
week. A canceled software upgrade, concerns about the
coming launch of bitcoin futures and fears of an asset
bubble weighed on the cryptocurrency, which is known for
sharp swings.
On Monday, bitcoin prices
regained some of their losses
in volatile trading. It traded as
high as $6,770, according to
CoinDesk, up about 16% for
the day, then slid back to
about $6,500.
Even with the decline, bitcoin is still up more than 500%
this year and has a market
capitalization of about $100
billion.
The latest drop marked the
fifth time this year that bitcoin has fallen more than 20%
from a recent high, according
to research site CoinDesk. Bitcoin traded at about $6,500
late Monday.
The recent decline came after last week’s suspension of
plans that would have split the
digital currency into two competing versions.
A group proposing to
Choppy Gains
Bitcoin has had several 20% drops through its broader surge.
Nov. 8
Business group abandons
plan to create alternate
version of bitcoin.
$8,000
Sept. 4
China announces plans to
ban ICOs, later prepares to
shut down exchanges.
6,000
June 11
Prices hit $3,000 for first
time, spark profit-taking
selloff.
4,000
ANDREY RUDAKOV/BLOOMBERG NEWS
Canceled software
update and concerns
about coming futures
hit cryptocurrency
2,000
0
J
F
M
A
M
Note: As of Monday 5 p.m. ET
Source: CoinDesk
launch a new version of the
currency that would allow for
faster trading put off those
plans after they were bitterly
opposed by a group of bitcoin’s main software developers.
Traders also have been jittery about the impending introduction of bitcoin futures.
Exchange operators CME
Group Inc. and CBOE Global
Markets Inc. have announced
plans to offer such contracts,
which would give Wall Street
traders an avenue to bet on
bitcoin prices and hedge
against volatility, a crucial
step in bitcoin’s move into institutional and retail markets.
Those plans come with
risks: Over the weekend,
Thomas Peterffy, one of the
J
J
A
S
O
N
THE WALL STREET JOURNAL.
world’s most successful derivatives traders, said he was
concerned bitcoin derivatives
would introduce extraordinary
volatility that would be difficult to contain.
“For the first time, I am extremely scared,” Mr. Peterffy,
founder and chairman of Interactive Brokers Group, told Barron’s, citing concerns about
the stability of Wall Street’s
smaller clearing firms.
Investors who have stuck
with bitcoin have been rewarded handsomely. Three
years ago, the digital currency
was at $300 and six years ago
it was at $2.
The sharp rise has sparked
concerns that the digital currency is mired in one of the
biggest financial bubbles of all
A bitcoin miner in Russia. Even after its slide, bitcoin’s price is still up more than 500% this year.
time.
One alternative version of
the digital currency called Bitcoin Cash has quickly grown in
popularity. Launched in August and created as a split
from the original bitcoin, Bitcoin Cash uses a technology
that can process more transactions at a given time, translating to lower fees for users. At
about $21 billion, it is the
third-largest cryptocurrency
by market value, according to
industry site Coinmarketcap.com.
Bitcoin’s backers are still
fighting along the lines of the
initial schism: Some want bitcoin to have low costs and fast
transaction times. Others want
to keep the current configuration, which is driving up trans-
action fees and bottlenecking
payments. This slower network works better if bitcoin is
being used as a store of value.
Digital currencies like bitcoin are generally open-source
software projects, sustained
by developers who work on a
volunteer basis. That also
means any other group is welcome to take the software and
create their own version of it.
Bitcoin Cash is a copy of bitcoin that is faithful to the
original in all but a few respects.
There was an initial bout of
relief last week, which helped
propel bitcoin higher, after the
plans for a version of bitcoin
that would have somewhat increased capacity were withdrawn. But it just opened the
door for Bitcoin Cash’s backers
to make a push.
The first important marker
of this will be a measurement
of activity from the “miners”:
businesses that process transactions on the network and
get paid in newly created
coins. A measure of their combined computing power, called
the hash rate, has been rising
for Bitcoin Cash and falling for
bitcoin.
Still, the reality is that the
original bitcoin has been in
use for about nine years and
has a community of businesses, developers, and miners
around it. Bitcoin Cash has existed for a few months, and,
despite its positioning for payments, has few—if any—retail
outlets that accept it for that.
Treasurys
Fall, With
Tax Bills
In Focus
SANDY HUFFAKER/GETTY IMAGES
BY DANIEL KRUGER
Mattel’s shares surged 21% on news of a takeover bid from rival Hasbro, whose shares also moved higher Monday. Mattel’s booth at Comic Con in San Diego in July.
Stocks Rise as Corporate Action Picks Up
BY AKANE OTANI
AND MARINA FORCE
U.S. stock indexes inched
higher following a flurry of
corporate news.
The gains came after stocks
slipped last week when investors became concerned about
the prospects for tax cuts.
The
Dow
MONDAY’S Jones Industrial
MARKETS
Average edged
up 17.49 points,
or less than
0.1%, to 23439.70. The S&P 500
added 2.54 points, or 0.1%, to
2584.84, and the Nasdaq Composite rose 6.66 points, or
0.1%, to 6757.60.
Mattel surged $3.02, or
21%, to $17.64—the stock’s biggest one-day percentage gain
since 1987—after The Wall
Street Journal reported Friday
that Hasbro made a takeover
offer for the company in a deal
that would unite the two biggest U.S. toy makers. Hasbro
added 5.38, or 5.9%, to 96.83.
Qualcomm rose 1.92, or 3%,
to 66.49, after the chip maker
said its board rejected a $105
billion takeover bid from
Broadcom.
General Electric fell 1.47, or
7.2%, to 19.02, after the company lowered earnings targets
for 2018 and said it would cut
its annual dividend by $4 billion. It was the stock’s lowest
close since 2012 and its biggest percentage decrease since
2009.
Meanwhile, investors said
they would continue to watch
developments on a tax-overhaul effort in Washington.
Hopes for tax cuts helped
bank stocks, bond yields and
the dollar jump after the November 2016 election, but
many of those moves have
faded this year as investors
have contended with uncertainty around policy changes.
“I think we will eventually
see some tax bill, but the timing is highly uncertain as the
Senate bill is really different”
from the one in the House,
said Zhiwei Ren, managing director at Penn Mutual Asset
Management.
Later this week, analysts
say they will be monitoring
comments from central bank
leaders, with European Central
Bank President Mario Draghi
and Federal Reserve Chairwoman Janet Yellen both set
to speak Tuesday.
Analysts also will be watching for the latest consumerprice index reading due
Wednesday, with the Federal
Reserve widely expected to increase rates in December.
The Stoxx Europe 600 fell
0.7% and notched its fifth consecutive session of declines,
weighed down by losses in
shares of banks and insurance
companies.
At the midday break in Tokyo Tuesday, Japan’s Nikkei
was up 0.3% after logging its
largest one-day percent decline since April on Monday.
Australia’s S&P ASX 200 was
down 0.9% on weak commodity stocks.
Driven by Deals
Mattel shares jumped following
reports that Hasbro made a
takeover offer for the company.
Performance Monday
25%
20
15
Mattel
Hasbro
10
5
One-minute intervals
0
10
11 noon 1
2
3
4
Source: FactSet
THE WALL STREET JOURNAL.
Chinese Government-Bond Yields Rise to Three-Year High
BY SHEN HONG
SHANGHAI—Chinese government-bond yields rose to a
three-year high, after a selloff
in U.S. Treasurys that further
worried investors already concerned about Beijing’s debt.
The yield on China’s benchmark 10-year bond rose 0.08
percentage point Monday to
3.98%—its highest since October 2014. Bond yields and
prices move in the opposite
direction.
The world’s third-largest
bond market has been under
pressure since early in the
year, when Beijing raised
short-term interest rates to
discourage borrowing by speculators. The perception that
reducing risk has overtaken
spurring growth as policy
makers’ priority has been reinforced in recent weeks as the
central bank has declined to
inject large amounts of cash
into the market—though on
Monday it did pump in 150 billion yuan ($22.59 billion), its
biggest injection since the 394
billion yuan of Oct. 13.
Concerns that a U.S. tax
overhaul would widen the
budget deficit sent the yield
on the 10-year Treasury note
up 0.07 percentage point on
Friday—its biggest rise since
September—to 2.397%. Higher
returns on U.S. government
paper make Chinese bonds
less attractive by comparison.
Also weighing on the Chinese
bond investors’ sentiment: a
strong Chinese stock market.
The benchmark Shanghai
Composite Index hit a 22month high Monday.
At close to 4%, the yield on
10-year Chinese government
bonds is now some distance
above those on other major
economies’ comparable debt—
notably the 0.41% yield on 10year German bunds and the
0.05% on 10-year Japanese
government bonds.
Foreign investors, mainly
central banks and sovereignwealth funds, have been more
bullish on Chinese bonds: At
the end of October, their holdings stood at a record 1.09 trillion yuan.
U.S. government bonds
edged lower as investors assessed the status of negotiations on the ReCREDIT
publican
taxMARKETS overhaul plan in
Congress
and
awaited inflation
data due this week.
The benchmark 10-year
Treasury yield rose to 2.400%
from 2.397% Friday. Yields rise
as bond prices fall.
Bond yields have risen in
recent sessions amid uncertainty created by the possible
impact of Republican House
and Senate tax-overhaul plans
on economic growth and the
budget deficits.
Adding to the confusion,
Senate Republicans’ proposal
to overhaul the tax code diverges in key ways from a
plan that advanced through a
House committee. Senators
would delay a corporate tax
rate cut until 2019, forgo estate tax repeal, and eliminate
the entire state and local tax
deduction. Compared with the
House bill, those changes and
others freed up hundreds of
billions of dollars that could
enable senators to avoid
tough and politically painful
choices.
“We thought there would be
volatility around tax reform,”
said Dan Heckman, senior
fixed-income strategist at U.S.
Bank Wealth Management.
“We’re starting to see that.”
Bond investors are also trying to grasp the potential impact from inflation data this
week—producer prices Tuesday and consumer prices
Wednesday. The consensus estimate for the consumer-price
index calls for 2% headline inflation and 1.7% excluding
food and energy costs.
The Federal Reserve has
fallen short of its 2% inflation
target on its preferred measure, personal-consumption
expenditures.
AUCTION RESULTS
Here are the results of Monday's Treasury auctions.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
13-WEEK AND 26-WEEK BILLS
13-Week
26-Week
$130,618,187,700 $118,653,475,200
$42,000,346,200 $36,000,021,800
$617,837,700 $476,040,200
$210,000,000 $200,000,000
99.686556
99.312444
(1.240%)
(1.360%)
1.261%
1.388%
Coupon equivalent
39.17%
48.66%
Bids at clearing yield accepted
912796NS4
912796PG8
Cusip number
Applications
Accepted bids
" noncomp
" foreign noncomp
Auction price (rate)
Both issues are dated Nov. 16, 2017. The 13-week bills
mature on Feb. 15, 2018; the 26-week bills mature on
May 17, 2018.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | B11
* * * *
MARKETS
Pound Weakens as U.K. Faces Tumult
Jitters around British
leadership and Brexit
talks ramp up the
volatility in sterling
Political Currency
Over the past two years the British pound and U.K. markets have been driven by major electoral
events and the developments in the country's exit from the European Union.
How many dollars one British pound buys
Whatever sterling does
next, it is likely to be a big
move.
The pound fell by as much
as 1% against the dollar on
$1.55
By Olga Cotaga,
Saumya
Vaishampayan
and Mike Bird
1.45
Monday on concerns about the
state of British politics before
recovering some of the losses,
one of many recent bouts of
volatility for this currency.
But many market players
have been holding off from
making big decisions as they
wait for political clouds to lift.
That could change soon.
Almost a year and a half after the Brexit vote, Britain has
made little progress in moving
to all-important trade talks
with the European Union. The
two sides have been bickering
over divorce issues such as
how much the U.K. will continue to pay to Brussels. It
should become clear at an EU
meeting next month whether
trade negotiations can begin.
“Sterling could either get a
big bounce, or it could turn
quickly into the biggest short
of 2018” if investors believe
Brexit talks are getting nowhere, said Viraj Patel, a foreign exchange strategist at
ING.
In a recent note, Commerzbank said traders and investors had yet to focus on the
December summit. So the risk
of EU leaders concluding not
enough progress has been
made to proceed isn’t priced
into the pound, leaving sterling vulnerable to falls, the
bank said.
”It’s going to be crucial how
quickly we can move into the
trade talks,” Mr. Patel said.
Email: heard@wsj.com
Dividend Cut
Isn’t What
You Think
A dividend cut is generally
bad news for a company. But
not necessarily the bad news
investors think it is.
General Electric cut its
dividend by half on Monday,
saying it was a move it
needed to make to preserve
cash for restructuring efforts. Investors worried that
it was really a sign that the
company, which also sharply
cut its 2018 earnings forecast, would have lower earnings for years to come.
The conventional wisdom
is companies cut dividends
when they think profits are
doing down and raise them
when they think earnings
will be higher. The only
problem is that studies have
repeatedly found that dividend cuts and increases
aren’t a good predictor of
the direction of future earnings or cash flow.
But new research finds
dividend moves are a good
signal of something else.
Economists Roni Michaely,
Stefano Rossi and Michael
Weber examined U.S. financial statement data from
1963 to 2015 and found that
dividend cuts tend to lead to
higher volatility in cash
flows, and that dividend increases portend greater stability. The bigger the dividend cut, the more choppy
future cash flows tend to be.
And this makes sense: If
results get lumpier, management can’t be as certain that
they are going to have the
money they want to cover
both their needs and opportunities. All else equal, a
company with more volatile
earnings is worth less than
one with stable earnings.
Stable earnings are something that GE used to be
known for. Its dividend cut
may count as recognition
that those days are in its
past.
—Justin Lahart
June 23
‘Leave' wins U.K. referendum
on EU membership
Jan. 17, 2017
Mrs. May argues
‘No deal [with the EU] is
better than a bad deal’
1.50
Oct. 5
Prime Minister
Theresa May’s speech
to Conservative
Party conference
1.40
Sept. 22
Mrs. May’s speech
suggests transition
period in leaving EU
June 8
The governing Conservative
party loses majority in
parliamentary elections
1.35
1.30
Feb. 20, 2016
Prime Minister David
Cameron calls referendum
on U.K. membership of the EU
1.25
1.20
2016
’17
Net bets pound will rise
Yield on 10-year British government bond
2.00%
20,000 contracts
0
1.75
–20,000
1.50
–40,000
1.25
–60,000
1.00
–80,000
0.75
–100,000
0.50
–120,000
2016
’17
2016
’17
THE WALL STREET JOURNAL.
Sources: FactSet (currency); CFTC (net bets); TradeWeb (yield)
Sterling could rise to its
year-to-date high of around
$1.37 if Britain does make
some progress at December’s
meeting, said Roger Hallam,
currency chief investment officer at J.P. Morgan Asset Management. If the U.K. fails to do
so, the pound could fall to as
low as $1.25, Mr. Hallam said.
Late Monday in New York,
the pound was at $1.3115, compared with $1.3191 on Friday.
It fell 0.4% against the euro
and 0.6% against the Japanese
yen. U.K. government-bond
yields fell along with the
pound, closing at 1.331% from
1.341% Friday. Bond yields fall
when prices rise.
The market moves were
triggered by a weekend report
in the Sunday Times that 40
members of Parliament had
agreed to sign a letter of no
confidence in Prime Minister
Theresa May. Just eight more
MPs are required for a formal
leadership challenge to begin,
according to the report.
Mrs. May’s government has
been seen by investors as being in a weak position since
she failed to win a majority
government in June’s election.
Any change in leadership
could hamper the talks in
Brussels and potentially lead
to a new leader less interested
in compromising with the EU.
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
GE’s Light Bulb Finally Goes On
So far, so good for General Electric’s new leadership. But the hardest parts
of a big turnaround are still
in the future and will take
time to yield results.
Chief Executive John Flannery continued to sound the
right notes during Monday’s
investor day by vowing to
trim the company’s sprawling business portfolio and
focus on higher-margin
units.
His decision to halve the
quarterly dividend, while
painful, means the company
will be much more likely to
cover its obligations from
the free cash flow it generates. He acknowledged that
complexity, a longtime gripe
of investors, has hurt the
company and pledged to
simplify the business metrics
it reports.
Promising to emphasize
equity, rather than cash, in
executive compensation is
another good idea after poor
shareholder performance
and embarrassing revelations of corporate excess.
And Mr. Flannery seems to
grasp how important it is to
Grounded
GE’s adjusted earnings per share
$2.0
1.5
1.0
0.5
0
2011
’12
’13
’14
’15
’16
’17*
’18*
*Midpoint of company forecast
THE WALL STREET JOURNAL.
Sources: the company, FactSet (forecast)
change certain aspects of the
company’s culture. One slide
in the company presentation
vowed to improve the company’s “say/do ratio.”
Yet the biggest task, simplifying the business portfolio and turning around the
prolonged share-price meltdown, will be far easier said
than done. Shares fell
sharply once again Monday
and are down about 40% this
year, touching their lowest
level since 2011.
Changing GE’s mix of
businesses is, of course,
nothing new; former CEO
Jeffrey Immelt was a serial
reshaper of the portfolio.
The difference here is that
Mr. Flannery has laid out a
clear plan by which investors
can judge his progress. He
will have to proceed quickly,
though, while maintaining a
delicate touch.
The more sensible approach to the company’s financial obligations comes
with the side effect of lean
times in the near future.
Management projections for
adjusted earnings of $1 to
$1.07 a share in 2018 were
below the FactSet analyst
consensus of $1.15. The company was discussing profit of
$2 a share as recently as this
summer.
What is more, GE plans to
sharply cut its capital spending next year to $3.4 billion.
That will improve short-term
free cash flow, but it runs
the risk of limiting growth
prospects.
Investor skepticism about
Mr. Flannery’s turnaround
plan certainly is understandable given the stock’s recent
history. GE’s shares rocketed
higher when the company
announced the exit from the
finance business in 2015; investors who bought the
stock on that basis have
been punished severely.
At 19 times next year’s depressed earnings guidance,
the stock isn’t particularly
expensive, but winning investors back will take far
more doing than saying.
—Charley Grant
A no-deal outcome between
Britain and its biggest trading
partner also would reduce
forecasts for economic growth
and likely cause the Bank of
England to move more slowly
in tightening monetary policy,
which in turn would put pressure on the pound. Higher
rates typically boost yields,
which make the region more
attractive to investors looking
for better returns, benefiting
the local currency.
For now, the pound is too
cheap to sell, according to Valentin Marinov, head of G-10
currency strategy at Crédit Agricole.
In the week to Oct. 31, speculators held a small net bullish
position on the pound, according to data from the U.S. Commodity Futures Trading Commission, with 1,245 more long
than short contracts. As recently as April, investors were
deeply pessimistic about sterling, with more than 100,000
more short than long contracts
on the currency.
There are some silver linings for the pound: Sterling
could get some support from
continuing investment flows,
for instance, some investors
say, whether there is a deal or
not. Foreign direct investment
in the U.K. has been falling this
year, but asset managers remain net buyers of the country’s assets.
Though Hermes Investment
Management, with £30.8 billion ($40.6 billion) of assets
under management, has reduced its overall exposure to
the U.K. stock market since
Brexit, it continues to buy
shares in those companies that
generate most of their revenue
abroad. “We’re quite long
term, so what we try and do is
ensure we’re not highly concentrated on a single binary
outcome,” said Louise Dudley,
portfolio manager at Hermes
Global Equities.
—Jason Douglas
and Laurence Norman
contributed to this article.
WSJ.com/Heard
OVERHEARD
After a hiatus of more
than six years, the Singapore
Exchange reinstated its daily
one-hour lunch break Monday,
coinciding with midday breaks
on Hong Kong and mainland
China exchanges.
Singapore scrapped its
longstanding lunch hour in
March 2011 to increase competitiveness with peers, but
trading volume dried up during what were normal lunch
hours anyway. Patrick Mohr,
head of execution consulting
at Instinet, has calculated
that noon to 1 p.m. is the
slowest hour of the trading
day, with just over 5% of
daily volume. Lunch hours are
still sacrosanct in many countries across Asia. In 2012,
hundreds of brokers in Hong
Kong protested when the
Hong Kong stock exchange cut its onetime twohour midday trading
break down to the current 60
minutes. Singapore brought
back its lunch break in response to traders lobbying
hard for its return, Mr. Mohr
said. “They’re passionate
about their lunch.”
U.S. Natural-Gas Bonanza With China Isn’t a Done Deal
Thanksgiving isn’t here
yet, but it’s already Christmas in Alaska—and West
Virginia and Texas.
The source of the good
cheer: big natural-gas deals
announced in China during
President Donald Trump’s
state visit last week. The
headline figures are impressive: a $43 billion pipeline
and liquefaction project in
Alaska, $84 billion for shale
gas and chemicals in West
Virginia, and a memorandum
on gas exports for Texasbased Cheniere Energy.
That sounds like a lot of
money and a lot of gas, and
it would be if all these nonbinding agreements metamorphose into real brick-
Burning Brighter
Natural-gas prices
$20 a million BTUs
15
10
Asia
5
U.S.
0
2007 ’09
’11
’13
’15
’17
Source: IMF
and-mortar projects. That,
however, is unlikely.
Building liquefied naturalgas plants is a notoriously
expensive and lengthy proposition, one reason a 2012
study found the cost of the
Alaskan project might actually be as high as $65 billion.
And because the Asian gas
market is forecast to be
oversupplied until the early
2020s at least, and LNG
projects are so risky, companies have an incentive to
frighten off potential competitors with splashy announcements with big partners. If the Alaskan project
goes through, it will compete
with Cheniere, which in turn
might compete with Russian
gas supply to China, which is
also under negotiation. Of
course, many of these multibillion-dollar deals will never
happen, trapped forever in
the Upside Down.
Chinese investors consid-
ering plowing their billions
into Alaska have the cautionary tale of Australia to consider. Terminals greenlighted
there during the height of
the commodities boom
nearly all ran massively
overbudget. That is causing
huge problems for Aussie exporters now facing Asian gas
prices trading in a range of
$6 to $9 a million British
thermal units, or MMBtu,
down from over $15 in 2015.
The Alaskan project,
meanwhile, would produce at
a cost of about $6 to $7 a
MMBtu, including shipping
and tax breaks, according to
a presentation by Alaska
Gasline Development, the
U.S. partner on the deal.
Even assuming Asian prices
are higher by the time the
project would come online in
the mid-2020s, that doesn’t
leave a lot of room for error.
Cheniere, which already
ships some cargoes to Asia,
might be better placed; it
said in 2016 that its margin
to Asia would be as much as
$2 a MMBtu, even with
Asian gas prices at just $7.
So, keep an eye on gas
prices and on whether any of
these contracts evolve into
actual investment over the
next 12 to 24 months. The
U.S. is well-placed to become
a significant gas supplier to
China. But the game is really
just beginning.
—Nathaniel Taplin
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B12 | Tuesday, November 14, 2017
THE WALL STREET JOURNAL.
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FIXED INCOME | EQUITIES | REAL ESTATE | ALTERNATIVES | PRIVATE DEBT
1
Ericsson, June 2016; Brookings Institute, July 2012; PGIM Real Estate, February 2017.
2
Data as of 6/30/17.
© 2017 Prudential Financial, Inc. (PFI) and its related entities. PGIM Inc. is the principal asset management business of PFI. PGIM is a trading name of PGIM Inc. and its global
subsidiaries. Prudential Financial, Inc. of the United States is not affiliated with Prudential plc, which is headquartered in the United Kingdom. The PGIM logo and the Rock design are
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JOURNAL REPORT | BIG ISSUES
Follo
The E
w
xperTuesday, November 14, 2017 | R1
ts
An O
n
THE WALL STREET JOURNAL.
© 2017 Dow Jones & Company. All Rights Reserved.
SQUARING OFF
Conv line
e
DETA rsation
I LS
, R2
We invited advocates on each side of six crucial energy issues to make
their best case. Read their debates here and join the conversation online.
Does Nuclear
Power Have a
Robust Future
In the U.S.?
Here’s one sign that nuclear energy has been struggling:
Operators shut down six reactors in recent years before
their licenses expired, and announced plans for several
other early closings, according to the Energy Department.
Reasons given include competition from natural gas, burdensome regulation and market structures. Only new state
subsidies can prevent more closings, plant operators have
said.
Still, nuclear plants produced almost 20% of total U.S.
electrical output in 2016, and 63% of carbon-free electricity. Faced with global warming, many agree nuclear offers
the most efficient renewable alternative to carbon-based
fuels. Meanwhile, the Trump administration has promised
to help the industry with incentives and reduced regulation.
So, will nuclear lead the way, or won’t it?
Exelon Corp. last year dropped plans to
close its Clinton, Ill., nuclear plant after
the state enacted subsidies to help
keep the plant open.
JOHN DIXON/THE NEWS-GAZETTE/ASSOCIATED PRESS
YES
It’s Competitive
And Necessary
BY RICH POWELL
THE FUTURE OF U.S. nuclear power is bright—and
nonnegotiable.
A robust civilian nuclear
sector is mandatory for the
U.S. to remain a major geopolitical, economic, military and environmental
leader. After decades of
policy neglect, Washington is finally addressing what is both a national and global necessity and a tremendous opportunity.
Bipartisan political support is growing to
reform new reactor licensing and improve tax
incentives for new nuclear facilities, led in
Congress by clean-energy advocates as well as
national-security and energy-reliability hawks.
The Trump administration has taken bold
action to support nuclear energy, including expanding federal financing for the two reactors
being built in Georgia and proposing that regulators change the way electricity is priced so
that nuclear and coal-fired plants can earn
more based on plant resiliency.
Market pricing reform would be an important step in helping to restructure power markets and bring an end to the closures of reactors seen in recent years. Current markets
undervalue the greater reliability of nuclear
energy in the face of natural disasters—true
resilience likely comes with greater capital
cost. New plants would also be tremendously
aided by proposals for improved tax incentives backed by the White House that would
benefit deployment of nearly 4 gigawatts of
advanced nuclear power.
Some don’t believe in a nuclear future because of the low cost of natural gas. Gas is
Mr. Powell is executive director of the ClearPath Foundation, a nonprofit that promotes
conservative clean-energy solutions. He can
be reached at reports@wsj.com.
certainly cheap right now, but most vertically
integrated utilities don’t want to rely on a single fuel source, especially one with historically
significant price swings.
There is also nothing fundamentally expensive about nuclear. Much of the current additional capital cost is due to years of inactivity
and resulting lack of experience and standardization—gaps that deny projects the kinds of
knowledge transfer than can lower costs
through repeated construction of the same design. China and South Korea have been able to
drive out costs through scale and repeated
construction experience.
Skeptics also point to falling renewable
costs and stalled growth in demand for electricity as an argument against investing in nuclear. But wind and solar, because of their intermittent character, require grid-scale energy
storage, and that is expensive. And despite
low electricity growth, there will be need in
the generation market to replace many kinds
of retiring plants in the coming years. In fact,
this just opens the door for advanced technologies, particularly smaller reactor designs.
Several U.S. entrepreneurs are developing
Please see NUCLEAR YES page R2
NO
It Is Up Against
Too Many Forces
BY JASON BORDOFF
A DECADE AGO, nuclear
power appeared to be on
the verge of a renaissance
in the U.S. The Energy Information Administration
projected U.S. nuclear
power generation would
grow 13% from 2005 to
2020. The Nuclear Regulatory Commission was preparing to receive
dozens of applications to build new reactors,
the first in decades. Toshiba bought Westinghouse for $5.4 billion and had plans to install
45 new reactors world-wide by 2030.
I believe a strong nuclear-power sector
would benefit the U.S. But the truth is, the in-
Steady State
Nuclear power's electricity output in the U.S. has been nearly flat for the past decade but is projected to edge
down as natural gas and renewables rise. U.S. net electricity generation from selected fuels:
2,500 billion kilowatt-hours
Projected
2,000
Natural Gas
1,500
Renewables
1,000
Coal
Nuclear Power
500
Petroleum
0
1980
’90
2000
’10
’20
’30
’40
Note: Assumes Clean Power Plan remains in effect. Without CPP, coal and natural gas won't diverge as sharply; generation from nuclear and other
fuels shown would be little changed.
THE WALL STREET JOURNAL.
Source: Energy Information Administration
dustry is in crisis—and the signs don’t look
good for it turning around. In the past five
years, six reactors (at five plants) have been
closed, and operators have announced plans
to shut down several more. The list is likely to
grow, as more than half of America’s nuclear
plants are reportedly losing money.
Moreover, all plans to build new reactors
have been scrapped, save for two in Georgia,
and their future is uncertain without major
federal support. Westinghouse, the designer
of the reactors there, is in bankruptcy proceedings. And the Energy Information Administration now projects the share of nuclear in
our electricity mix to fall by nearly half
through 2050, to 11% from a current 20%.
Even that outlook may be optimistic. China,
meanwhile, has several dozen nuclear plants
in development.
What happened? First, and most important,
the shale revolution has delivered natural-gas
prices far below what had been expected, undermining the competitiveness of nuclear
power in deregulated markets. Second, electricity demand, which back in 2005 had been
expected to grow nearly 2% a year, instead has
been roughly stagnant, a result of increased
efficiency and slower economic growth. Third,
renewable-energy costs have fallen far more
steeply than most projected. Fourth, the lack
of a meaningful price on carbon means that
the cost of power from fossil fuels doesn’t reflect its full cost to society. Finally, public support of nuclear power has waned.
Building new reactors is made even more
challenging by the very costly and complex
regulatory approval process. Even plants with
new reactor designs intended to be safer and
less expensive to operate—like the one in
Georgia, and one abandoned in South Carolina—have run into unexpected problems and
large cost overruns. U.S. firms lack the equipment and expertise to build nuclear plants after not doing so for decades. And the U.S. nuPlease see NUCLEAR NO page R2
Mr. Bordoff is a former senior director with
the National Security Council and special
assistant to President Barack Obama. He is
now a professor in international and public
affairs and the founding director of the
Center on Global Energy Policy at Columbia
University’s School of International and
Public Affairs. Email: reports@wsj.com.
INSIDE
Should the U.S. limit
exports of natural gas?
R2
Do the states have a role
in making climate
policy?
R3
Should governments
require utilities to make
the electric grid more
stormproof?
R4
Will electric vehicles
replace gas-powered
ones?
R5
Will new tariffs
hurt the U.S. solar
industry?
R6
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
R2 | Tuesday, November 14, 2017
JOURNAL REPORT | BIG ISSUES
Should the U.S. Limit Exports of Natural Gas?
President Donald Trump in June announced to the world an age of “energy
dominance” by the U.S.
More drilling for oil and gas and new incentives for nuclear energy are part of the
Trump administration’s plans to enlarge the
already huge U.S. footprint in increasingly
YES
Exports Raise Prices
In the U.S. and Hurt
Manufacturing
BY PAUL CICIO
YEARS AGO, Congress decided that if natural gas
were to be exported to nonfree-trade-agreement, or
NFTA, countries, it would
have to be in the public interest. But it can’t possibly
be in the public interest to
export as much natural gas as the Energy Department has approved for the next few decades: an amount roughly equal to two-thirds
of all of our domestic demand last year.
Low-cost, plentiful natural gas has been a
critical contributor to the U.S. economy for
years. Inexpensive natural gas has played a
major role in the revival of manufacturing in
this country. The big increase in exports that
the gas industry and the Trump administration want will pressure supplies and increase
the price in the U.S., as buyers overseas bid up
prices—posing a significant long-term risk to
the U.S. economy. Plus, gas resource estimates
are highly speculative and subject to significant economic and political risk long term.
When Congress passed the Natural Gas Act,
which says that the Energy Department can’t
approve exports to NFTA countries without it
being in the public interest, the message was
clear: The U.S. economy as a whole is a priority over exports to NFTA countries.
But last year, according to the Energy Department, some 56% of U.S. LNG exports were
shipped to 13 NFTA countries. Such shipments
don’t constitute fair trade, nor do they follow
the president’s “America First” policy for U.S.
manufacturers. Shipping our LNG to NFTA
countries rewards them for not having freetrade pacts with the U.S. and undermines our
competitive global energy markets.
Another part of the plan: more exports of
natural gas. The U.S. has become a major
player in international natural-gas markets in
recent years. Improved drilling techniques,
including hydraulic fracturing, or fracking,
along with technological developments that
ability to secure bilateral fair-trade agreements. NFTA countries buying our natural gas
are often the same countries that subsidize
their manufacturers and apply import tariffs
to prevent U.S. manufacturers from exporting
products into their country.
Increasing LNG exports is damaging to the
economy when prices increase to global levels, undermining our manufacturing competitiveness and jobs. Even a study sponsored by
the Energy Department to justify its export
approvals concluded that increased LNG exports resulted in higher natural-gas and electricity prices, decreased wages, capital and indirect tax income, and created negative
impacts to manufacturing competitiveness and
jobs. Gas producers, exporters and shareholders are the winners, and everyone else loses.
Australia shows what can happen when
LNG exporters reach full export potential. Exporters in Australia contracted for so much of
its natural gas that prices increased threefold
to levels equal to what foreign LNG buyers
were paying. Manufacturers’ competitiveness
was severely damaged and jobs were affected.
Exporting LNG isn’t a big job creator. The
U.S. Bureau of Labor Statistics says that from
2010 to 2016, the oil-and-gas industry created
only 22,600 direct jobs, while the manufacturing sector created 820,000. Significant job
creation attributable to natural gas can only
be achieved if the gas is consumed in the U.S.
If it is exported, the countries buying the gas
will get the job-creation benefits.
Linking our biggest, most affordable energy
source more closely to international markets
will mean increasing exposure of U.S. consumer
prices to global volatility, price shocks and
speculative international trading. The Energy
Department should define public interest and
complete an analysis of proposed LNG exports
that includes long-term economic risk assessment. Then it should cancel NFTA approvals
that aren’t in the public interest, and establish
a consumer safety valve to ensure that exports
won’t impose economic harm on the U.S.
Mr. Cicio is president of the Industrial Energy Consumers of America. He can be
reached at reports@wsj.com.
Trade Balance
Domestic Harmony?
As production rose with the shale boom, the U.S. needed
less natural gas from abroad and has recently been a net
exporter. Monthly U.S. natural-gas net imports (imports
minus exports):
U.S. natural-gas production and consumption
NO
Increasing Exports
Will Have a Positive
Economic Impact
BY ANNA MIKULSKA
U.S. EXPORTS of liquefied
natural gas are on the way
to becoming a vital part of
global trade in natural gas.
The Energy Information
Administration
predicts
LNG exports will more than
triple by 2025, driven by
growing international demand, record U.S.
natural-gas production and added liquefaction
capacity. Demand for LNG is poised to grow
particularly in Asia, including China, Japan
and other countries that don’t share a freetrade agreement with the U.S.
Meanwhile, some U.S. politicians and manufacturers have repeatedly asked the Energy
Department not to issue new approvals for
LNG exports to the so-called NFTA countries.
But the Trump administration is continuing
the Obama-era policy of embracing LNG exports as a way to stimulate the U.S. economy
and facilitate broader aims of U.S. diplomacy.
And there are good reasons for doing so.
To start, the U.S. already exports many manufactured goods, services, oil, refined products,
chemicals and agricultural goods to NFTA
countries. There is no reason to treat LNG differently. Shipping LNG is a commercial transaction, not a reward. If the U.S. doesn’t export
its LNG, the NFTA countries will find other
suppliers, including Australia, Qatar, Russia,
Mozambique and possibly even Iran.
Advocates of limiting exports are concerned
about depleting domestic supply and triggering an increase in domestic prices, to the detriment of U.S. manufacturing competitiveness.
But even if exports were to grow to six times
their 2016 levels by 2018, they will constitute
will raise costs for natural-gas customers
within the U.S., including manufacturers.
Industry sources, meanwhile, say that
natural-gas exports will create more jobs at
home and help the U.S. compete globally
with other exporters of natural gas, such as
Russia and Iran.
only about 4% of total U.S. production. And to
achieve these levels, U.S. producers must remain competitive in global markets—in other
words, domestic prices of natural gas have to
remain relatively low.
Though it is true that increasing LNG exports will push domestic prices up, the impacts are modest. A 2015 Energy Department
study on the macroeconomic impact of increasing LNG exports finds that LNG exports
have a net positive impact on U.S. GDP. And
U.S. industries reliant on natural gas grow under all LNG export scenarios, even if at a
slightly lower rate.
Indeed, the U.S. natural-gas abundance has
already had a profound impact on gas-intensive
industries, and long-term investments are proceeding in parallel with continuing construction of LNG export capacity. The American
Chemistry Council estimated that shale development as of July has triggered 310 chemicalindustry projects (completed, started or projected). These projects are associated with an
expected $185 billion in new capital investment, 464,000 direct and indirect jobs, and $26
billion in new tax revenue through 2025.
Critics might look at selective years and
narrow job descriptions to try to argue that
LNG exports won’t contribute much to job
growth. But more than 61,000 jobs were created in the extraction of oil and gas between
2004 and 2017. And if one looks at Bureau of
Labor Statistics for extraction, drilling and
support activities in the oil-and-gas industry,
more than 162,000 jobs were created between
2007 and 2012.
If restrictions were imposed on LNG exports, only a few domestic manufacturers
would gain a small advantage, while the
broader benefits to the rest of the economy
would be lost. Restrictions would weaken the
U.S. position in bilateral and multilateral trade
discussions and reduce any foreign-policy benefit that could be derived from a growing U.S.
role in the global energy market.
Dr. Mikulska is a nonresident fellow in energy studies at Rice University’s Baker Institute for Public Policy. She can be reached at
reports@wsj.com.
80 billion cubic feet/day
78
76
400 billion cubic feet
74
300
70
Consumption
72
Production
2015
200
have boosted the industry’s ability to liquefy
natural gas for shipping have fueled both a
global boom and a glut in natural gas.
The fast-growing global market for liquefied natural gas, or LNG, that has arisen
makes U.S. supplies more exposed to international prices than before. Some fear this
2016
2017
’18
Where It’s Used
0
–100
Electric
power
Industrial
36%
28%
LINDSEY JANIES/BLOOMBERG NEWS
Natural-gas consumption by sector in
the U.S., 2016
100
Residential
16% 11% 9%
Commercial Other*
–200
’07 ’08 ’09 ’10
’11
’12
’13
’14
’15
’16
’17
*Lease and plant fuel consumption, pipeline and distribution,
vehicle fuel
THE WALL STREET JOURNAL.
Source: Energy Information Administration
Nuclear Yes
Continued from the prior page
advanced
nuclear-energy
technologies that are smaller,
more nimble and even have
the potential to be cost-competitive with natural gas. One
of these, a startup called Oklo
Inc., is designing a microreactor it says could operate for
10 to 20 years at a time with
low overhead. It’s less than 1%
the size of a traditional reactor and could be perfect for
quick deployment to areas
such as Puerto Rico, which
saw its grid devastated by a
hurricane.
Bill Gates-backed TerraPower also has potential. It is
working with Southern Co. to
develop TerraPower’s Molten
Chloride Fast Reactor, a design that potentially has significant cost benefits compared with conventional
generators. There is also NuScale Power LLC and its small
modular nuclear reactor,
which can be scaled anywhere
from 50 megawatts to 600
megawatts of capacity and
which will likely be operating
commercially by 2026.
The goal for each of these
companies is to export its
technologies. With forecasts of
as much as $10 trillion in
global investment in low-emissions power technology over
the coming decades, major investors and technology developers are paying attention.
The Energy Department re-
cently announced that it will
target advanced nuclear technologies for funding with the
same highly successful approach it has used through its
research program known as
Advanced Research Projects
Agency-Energy, or ARPA-E.
While the nuclear-energy
industry has suffered setbacks
over the past few years, the
promise of advanced reactors
and the importance of nuclear
energy to our national security will attract the financial
resources, the political clout
and the policy reforms necessary to win out in the long
term.
A thriving U.S. nuclear industry isn’t a “nice-to-have.”
It’s a must-have. And it will
happen again.
Follow The Experts >>
This Journal Report doesn’t stop here. Join us online with The Experts—a group of industry, academic and cultural thinkers who weigh in on
the latest issues raised in this and future reports. Read what they have to
say at WSJ.com/Experts. Posts featured throughout the week include:
“Why Government Energy-Efficiency Programs Sound Great—but Often Don’t Work,” by Sam Ori, the executive director of the Energy Policy Institute at the University of Chicago.
“It’s Time to Close the ‘Carbon Loophole,’ “ by Kate Gordon (@katenrg), a fellow at the
Center for Global Energy Policy at Columbia University, and Matthew Lewis, a strategic communications adviser focused on climate and energy issues.
“Why the U.S. Shouldn’t Sell Off the Strategic Petroleum Reserve,” by Jason Bordoff
(@JasonBordoff), professor of professional practice in international and public affairs and
founding director of the Center on Global Energy Policy at Columbia University.
Cheniere Energy’s terminal in Sabine Pass, Texas, began exporting liquefied natural gas last year.
Nuclear No
Continued from the prior page
clear
industry
lacks
standardization of designs
and equipment, further escalating costs.
While small, modular reactors hold promise to bring
down costs and address safety
and proliferation concerns,
the Trump administration
proposes slashing government
investment in energy R&D.
Meanwhile, shale-gas production is set to outstrip demand,
keeping prices low, and renewable costs keep falling.
The prospects for government policies that could support nuclear, from a carbon
tax to a long-term waste-dis-
The Journal Report welcomes
your comments—by mail, fax or
email. Letters should be addressed to Lawrence Rout, The
Wall Street Journal, 4300 Route 1
North, South Brunswick, N.J.
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posal solution, seem remote.
New legislation may be in the
works, but passage seems unlikely at present given congressional dysfunction and
opposition.
Federal financing is a necessary condition to revive U.S.
nuclear power, but even with
increased federal support, it is
far from certain the plant in
Georgia will be built. The
project is only about one-third
complete, costs have skyrocketed, and the planned start
date has been pushed back
many years.
Energy Secretary Rick
Perry’s recent order to the Federal Regulatory Commission to
consider guaranteeing recovery
of costs to struggling coal and
nuclear plants would prop up
those industries, but it faces
numerous hurdles at FERC, in
the courts and with a long list
of stakeholders who have filed
comments in opposition.
The decline of nuclear is
cause for concern. Nuclear is
the largest source of carbonfree electricity in the U.S., but
retiring plants are mostly replaced by gas and coal. Additionally, a robust nuclear-energy sector promotes U.S.
leadership in international
nonproliferation efforts, supports our national defense requirements, and facilitates the
expansion of nuclear globally
with high safety, security and
environmental standards. Left
to market forces alone, however, the outlook for U.S. nuclear power is grim.
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THE WALL STREET JOURNAL.
Tuesday, November 14, 2017 | R3
JOURNAL REPORT | BIG ISSUES
Do States Have a Role in Making Climate Policy?
When scientists from 13 U.S. federal
agencies issued a report on climate change
earlier this month that drew a direct connection between human activity and global
warming, it was a reminder of the turmoil
that has surrounded environmental issues
since President Donald Trump took office.
YES
States Can Mitigate
Damage Done by the
Federal Government
BY ARTHUR VAN BENTHEM
GIVEN THE STATE of affairs in Washington, D.C.,
states should adopt their
own policies to promote renewable energy and limit
the emissions of greenhouse gases.
Ambitious governments
in China, Europe and elsewhere are ramping
up pressure on their companies to become
world leaders in green energy, electric vehicles and low-carbon technologies, in an effort
to seize the golden opportunity that comes
with the rise of the global green-tech market.
Meanwhile, the U.S. federal government is
backing away from those same policies, rejecting the Paris accord and hitting the brakes on
fuel-economy rules and efforts to reduce carbon emissions under the Obama administration’s Clean Power Plan.
Several states, spearheaded by the governors of California, New York and Washington,
have pledged to fill the void in leadership by
adopting their own strict climate policies. In
principle, having a single federal policy is
cheaper for industry and less prone to unintended consequences. But an unwieldy patchwork of 50 different state policies is an extremely unlikely outcome of state initiatives.
Much more likely, state efforts will eventually spur demand for strict federal policies,
and operate at a regional level in the meantime. But they also could be short-circuited if
the Clean Power Plan is replaced with weak
federal regulation of carbon emissions that
would preclude stricter state rules, or if the
waiver that allows California to set vehicle
standards that are tougher than federal regulations isn’t extended.
It is imperative that states be allowed to
proceed unhindered. If they are, here are the
The Trump administration has rejected the
international Paris climate accord, calling it a
job-killing pact that impinges on U.S. sovereignty. It also has moved to repeal the domestic Clean Power Plan, following up on
the president’s pledge to boost the energy
industry by cutting regulation.
In response, several state governors have
pledged to take the initiative on climate
change by crafting their own strict emissions
standards and pursuing the development of
renewable energy with renewed vigor. Supporters say such actions not only will benefit
the environment but also will spur the devel-
highlights of what is likely to happen: two sets
of vehicle regulations, as we have now for
electric vehicles and local air pollution, and
broad regional cap-and-trade systems to reduce emissions from electricity generation and
heavy industry, like the ones already in place
among the nine states in the Northeast or the
California-Quebec-Ontario market.
There would likely be two vehicle standards
because under the Clean Air Act, California
was granted a unique federal waiver to adopt
stricter-than-federal vehicle policies, an acknowledgment of the state’s severe smog
problems. Other states have a choice—follow
California or stick with the federal standard.
About a dozen states, representing some 40%
of the U.S. population, have followed California’s lead on tailpipe emissions and electriccar regulations that exceed federal standards.
On fuel economy, when California set a
tougher standard and 14 states followed, it led
to an agreement among the Obama administration, states and auto makers on stricter
federal standards. In exchange, California
abandoned its own rule. The same could happen with regional cap-and-trade systems,
which could be linked or subsumed under a
federal trading system if they spur demand for
a uniform approach. The governors of CaliforPlease see CLIMATE YES page R4
NO
It Won’t Work—and
This Isn’t the States’
Role, Anyway
BY OREN CASS
MOST STATE-LEVEL efforts to reduce greenhousegas emissions cannot help
being incoherent and ineffective. Consider Vermont,
which has established a socalled renewable portfolio
standard requiring the use
of 75% renewable energy by 2032. That may
be a laudable aspiration, but it ignores how
energy markets work.
Vermont recently shut its emissions-free
nuclear power plant, which accounted for the
majority of the state’s electricity generation.
Without renewable capacity to fill the resulting hole, the state began importing more electricity from other states, generated primarily
with emissions-producing natural gas. Ironi-
State Action
Energy legislation introduced and enacted/adopted by the 50 states and D.C. in 2016
Introduced
Enacted/adopted
Renewables
Efficiency
107
Transportation
111
Security
321
267
74
Climate
221
95
Fossil fuels
Grid/transmission
673
254
213
101
42
188
142
THE WALL STREET JOURNAL.
Source: National Conference of State Legislatures
opment of the green-technology industry.
But critics say that such state initiatives
have a record of being ill conceived and ineffective, and that policies that run counter to
the federal government’s stand on the climate in international talks are beyond the
rightful scope of state governments.
cally, it had already banned fracking, the technology that extracts the natural gas that now
keeps its lights on.
Meanwhile, rather than rapidly developing
its own renewable resources, the state is leading a nationwide backlash against wind power:
Vermont added no wind capacity during
2013-16. The issue featured prominently in last
November’s gubernatorial race, which saw an
anti-wind Republican beat a pro-wind Democrat by almost 10 points. And, just last month,
state legislators approved strict noise limits
that will further limit development.
Vermonters can confidently reject nuclear,
coal, gas and wind from the comfort of their
warm and well-lit homes because shirking responsibility for their energy supply has few
consequences. They can draw electricity from
a regional power grid and import energy-intensive goods by exhaust-belching truck. Their
75%-renewable goal presumes the availability
of someone else’s nonrenewable plants to keep
the lights on when the wind isn’t blowing and
the sun isn’t shining. Those plants will be operating affordably only if other states remain
committed to a conventional grid.
But Vermont is not alone. Twenty-nine
states have renewable portfolio standards, and
lawmakers in both Massachusetts and California have recently proposed 100%-renewable
mandates. If everyone tries to reach their
goals, and more states feel compelled to join
and out-green each other, the grid will fall
apart.
This is not only irresponsible, but also fails
to address climate change. Since nationwide
carbon-dioxide emissions peaked in 2007,
states with renewable portfolio standards
have achieved smaller reductions, on average,
than states without them. And even significant
state-level achievements would mean little.
The Obama administration acknowledged that
its Clean Power Plan for cutting emissions in
every state would not have meaningfully affected global temperatures.
The reality of climate change is that the
overwhelming majority of future greenhousegas emissions will come from the developing
world. American emissions cuts are justified
primarily as a means of showing leadership.
But the symbolic actions of former Vermont
Gov. Pete Shumlin and his colleagues are not
Please see CLIMATE NO page R4
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THE WALL STREET JOURNAL.
R4 | Tuesday, November 14, 2017
JOURNAL REPORT | BIG ISSUES
Should Governments Require Utilities to Make the
Electric Grid More Stormproof?
When storms hit and the power goes out,
people want to know one thing: “When will
my lights be back on?”
The answer to that question could increasingly depend on decisions being made
right now by utilities and regulators about
YES
Utilities Must Go
Beyond ‘Hardening’
The Current Grid
BY JENNIE C. STEPHENS
AS CLIMATE change accelerates, extreme weather
events are becoming more
frequent and more destructive. Our existing grid infrastructure is ill-prepared
for this, and state public
utility commissions aren’t
adequately promoting sufficient grid resilience
investment for the public good.
More regulation is needed to ensure that as
utility companies stormproof their grids, they
are innovating for the good of society, and not
just maximizing shareholder returns.
Current efforts to stormproof the grid are
inadequate because they focus too much on
“hardening” the current grid and restoring
power rather than investing in innovations that
would prevent power outages in the first place.
Stormproofing the grid is conventionally
thought to include putting some transmission
and distribution lines underground, expanding
efforts to prune trees close to poles and wires,
and reinforcing or replacing towers and poles
with stronger, steel structures. Smart-grid investments, too, have helped utilities minimize
the duration of power outages by helping to locate and restore power more quickly.
But utilities must do more. They must be
required to make additional smart-grid investments that encourage households and buildings to be self-sufficient and “island” during
a storm so that when the centralized grid is
damaged (which inevitably will happen no
matter what degree of hardening takes places)
power outages are minimized. And the best
way to do this is for regulators to require utilities to install more distributed renewable energy throughout the grid.
what investments are necessary to stormproof our power grids, and the extent to
which efforts by the utility companies to
strengthen the grid should be regulated.
Policy makers in Washington are putting
new emphasis on grid reliability and resil-
Given the benefits of distributed renewable
power, we have to think outside the box and
expand our vision and expectations of electric
utilities. If we stay with the same old assumptions and keep trying the same old tactics, we
will increase grid vulnerabilities. Investing in
innovations that accelerate more distributed
renewable generation is critical to stormproofing the grid for the future.
A grid designed for distributed renewable
power is inherently more resilient to storms
than the current grid system. Renewable generation is modular and flexible, and when coupled with the potential of islanding technology
and microgrids, when destructive storms do
damage, the grid’s modularity allows for fast,
segmented recovery. More distributed renewable generation builds backups into the system. It creates networked redundancy, spreading out risks and reducing the potential for
cascading failures.
The tragedy in Puerto Rico, where Hurricane Maria effectively destroyed the grid, is
an opportunity to rebuild with distributed renewable design. After disruption, rather than
recovering by reinstalling the same technology, regulators should require utilities to be
prepared to upgrade and innovate.
Requiring utilities to make grids more resilient by adopting more distributed, renewable
energy is not easy, but regulatory change is essential. Consider solar panels, which can continue to provide power to buildings on which
they are installed, even if other lines are down.
Many utilities still aggressively resist distributed solar developments. Regulators need to
take a stronger stand in requiring utilities to
accelerate distributed renewable power.
We are losing precious time. The longer we
tell ourselves that existing public utility commissions’ plans and regulations are sufficient,
and that electric utilities are already adequately stormproofing the grid, the more
harm will come to our communities.
Dr. Stephens is the dean’s professor of sustainability science and policy at Northeastern University, associate director of Northeastern’s Global Resilience Institute, and coauthor of “Smart Grid (R)Evolution: Electric
Power Struggles.” Email: reports@wsj.com.
and best technologies are deployed.
But others say that instead of more regulation, there needs to be better coordination
between industry and regulators on both
what needs to be done and who will pay for
it.
iency. This year’s rash of hurricanes and the
damage done to grids in places like Florida
and Puerto Rico have given the debate new
urgency.
Some people say new regulations are necessary to see that the proper investments
NO
Government and
Utilities Must Keep
Working Together
BY PAUL STOCKTON
ELECTRICITY companies
are already making a huge
effort to bolster their infrastructure. They don’t need
more regulation. Instead,
industry and government
leaders need to build consensus on how best to prepare for the storms to come and on how the
utilities should recover the costs of those investments.
Resilience spending by utilities is massive
and on the rise. In 2016 alone, the electricpower industry spent more than $52 billion on
modernizing and strengthening the grid.
These investments have doubled in the past
decade. Moreover, in close coordination with
federal and state regulators, electricity companies focus this spending on especially cost-effective improvements.
Burying some lines and other infrastructure
helped protect electrical systems in Irma and
other recent hurricanes. More electricity companies are hardening their systems by replacing wood poles with steel or concrete ones.
Florida Power & Light has been replacing old
poles with more hurricane-resistant ones at
the pace of 16,000 a year.
No protection is perfect, however, which is
why a big part of the resiliency effort is also
focused on strengthening the utilities’ ability
to quickly respond and restore power when
outages do occur. Electricity companies nationwide, for example, are investing in smartgrid technologies that enable them to locate
and repair storm-induced damage faster.
Such investments paid major dividends
during recent storms. Companies affected by
Hurricane Irma restored electricity within six
days to 93% of the 7.8 million customers who
lost power. Additional investments in grid resilience are under way as well.
All of this progress has occurred within the
context of the extensive state and federal regulations that already exist. State public utility
commissions decide whether to approve the
infrastructure investments proposed by electric companies, and determine the rates companies can charge customers to pay for such
investments. At the federal level, the electricpower industry also must comply with mandatory reliability standards.
Other types of government initiatives are
essential to combat climate change and the
challenges it creates. The electric-power industry has reduced greenhouse-gas emissions,
and has cut CO2 emissions by nearly 25% from
2005 to 2016. Government policies should support additional measures.
But electricity companies already are rapidly incorporating clean energy into the power
mix. At the end of 2016, more than 70% of solar generation and nearly all wind generation
was installed by electricity companies. They
don’t need government rules to prod them—
they are already leading the way. What is
needed is a fair way to apportion the costs of
maintaining the energy grid for all customers
linked to it, including those who rely on solar,
wind and other intermittent sources of power.
Distributed and renewable generation, however, will only help stormproofing if those technologies are engineered to survive catastrophic
weather events. In some regions, those approaches make sense. Elsewhere, hardening traditional infrastructure, and building redundant
power feeds that can rapidly restore power,
will offer more cost-effective options.
New regulation to stormproof the grid is
unnecessary in either case, and no substitute
for the cooperative efforts between regulators
and the power industry already happening.
Dr. Stockton is managing director of the
economic and security advisory firm
Sonecon LLC. His clients include the Edison
Electric Institute. He was formerly the assistant secretary of defense for homeland defense and Americas’ security affairs. He can
be reached at reports@wsj.com.
Going Dark | Power outages in the U.S.
Number of outages
Number of people affected
4,000
30 million
Outages by cause, 2016
PCT. NUMBER
Weather/trees 33%
3,500
25
Faulty equipment/
24%
human error
3,000
2,500
2,000
1,279
925
20
Vehicle accident 12%
15
Planned 5%
189
Animal 4%
169
1,500
10
1,000
483
JOE SKIPPER/REUTERS
Theft/vandalism 0.3% 13
5
500
Overdemand 0.1% 3
0
0
’14
’15
’16
2012 ’13
’14
Source: Eaton Blackout Tracker
Climate Yes
Continued from page R3
nia and New York recently floated the idea of
linking the two existing carbon markets.
Those who criticize states for overreaching
and moving contrary to federal policy should
consider that state climate initiatives seem to
fit seamlessly with the Environmental Protection Agency’s stated goal to return power to
the states under Administrator Scott Pruitt.
The EPA has applied that philosophy selectively, aiming to relieve states that have a limited appetite for environmental action from
federal regulations, by backing out of the
Clean Power Plan, but explicitly leaving open
the possibility of denying California future requests for waivers on vehicle standards.
Then there is the criticism that states’ efforts to promote renewable energy sources
are far more expensive than continued reliance on nonrenewable sources for affordable,
reliable power. That, too, doesn’t hold water.
The costs of renewables are falling spectacularly, and setting goals for their adoption will
foster further innovation in battery storage
technologies. The move to renewables is inevitable, and other countries have already proven
they can run their power grids with far more
solar and wind than the U.S.
Finally, letting the states drive policy is the
only serious option to put the U.S. back on
track in the global green-tech race.
The U.S. is at serious risk of losing its dominant position in this multitrillion-dollar and
fast-growing market. For China and Europe,
this is an unprecedented opportunity to run
away with valuable patents, jobs and export
markets.
Just like our competitors, we need a sup-
’15
’16
Unknown 21%
818
THE WALL STREET JOURNAL.
portive government that is willing to enforce
policies to keep us at the cutting edge of
green innovation. Now that the federal government has given up American leadership on
climate, it is time to pass the baton to the
states and let them pressure Washington into
correcting a costly economic mistake.
Mr. van Benthem is an energy economist at
the Wharton School of the University of
Pennsylvania. Email reports@wsj.com.
Hurricane Irma cut power to nearly two-thirds of Florida electricity customers in September.
Climate No
Continued from page R3
going to lead developing nations away from
their pursuit of economic progress.
Nor is it the role of state leaders, no matter
how displeased with President Trump’s rejection of the Paris climate accord, to offset or
undermine our national government’s negotiating position on the international stage. Cali-
THOMAS PETER/REUTERS
2012 ’13
Jerry Brown of California is one of several governors pushing climate policies as the feds back off.
fornia Gov. Jerry Brown is plainly incorrect
when he defends his climate talks with China
by saying California is a “separate nation.” No
one, presumably, would countenance governors opposed to the Iran nuclear agreement
traveling to Qatar to coordinate continued
sanctions against the Iranian regime.
States will sometimes advance an economic, rather than environmental, rationale
for their renewable-energy policies—boosting
a promising industry. That strategy makes no
more sense here than in any other industry,
where politically motivated efforts at market
distortion would be rightly recognized as foolhardy.
If renewables are as economically attractive
as their proponents claim, then government
mandates should not be necessary to spur investment and deployment. Conversely, state
policy makers do neither their consumers nor
their fledgling industries any favors when
they mandate the purchase of things that the
market doesn’t want. A strong case exists for
funding precommercial research and development in a variety of speculative technologies,
renewable energy included. But that already
exists and has bipartisan support at the federal level.
States can supplement such efforts in their
own universities. If they are looking for other
ways to act on climate, they can encourage responsible urban planning and build infrastructure that will be resilient against stronger
storms and higher seas. But they should limit
their empty political gestures to ones that
damage neither the nation’s energy markets
nor its foreign policy.
Mr. Cass is a senior fellow at the Manhattan Institute for Policy Research. He can be
reached at reports@wsj.com.
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THE WALL STREET JOURNAL.
NY
Tuesday, November 14, 2017 | R5
JOURNAL REPORT | BIG ISSUES
BY MICHAEL TOTTY
ELECTRIC VEHICLES seem to
be on a roll.
Several countries, including
Britain, France and India, have
said they want to end sales of
gasoline and diesel cars and
light trucks
in less than
25
years.
Auto makers
are following
a l o n g —
Ford, General Motors
and Volvo all
have ambitious plans
Tony Seba
for electric
vehicles. Yet
electric
models accounted for
less than 1%
of cars sold
in the U.S.
last year and
only a bit
more than
1% of those
Kate Gordon
on the road
world-wide.
The Wall
Street Journal
asked
three experts
for their predictions on
the future of
electric vehicles: Tony
Seba, an auNawar Alsaadi
thor and entrepreneur;
Kate Gordon, senior adviser at
the Paulson Institute, a think
tank focused on U.S.-China relations and sustainable economic
growth; and Nawar Alsaadi, an
author and principal at investment-advisory firm Semper Augustus Capital. Here are edited
excerpts.
What’s next and when?
WSJ: Tony, how soon do you
think electric vehicles will replace gas and diesel ones?
MR. SEBA: By 2030, 95% of U.S.
automobile miles traveled will
be in on-demand, autonomous
electric-vehicle fleets, in a new
business model called transport as a service.
This disruption isn’t going
to be one where individuals
simply trade in their gasoline
or diesel vehicles for electric
vehicles. Both gasoline/diesel
vehicles and the individual
ownership of automobiles will
be disrupted. By 2030, 60% of
light-duty vehicles are expected to be owned by fleets
that provide transport-as-aservice—think electric, autonomous versions of Uber, Lyft or
Didi—and only 40% to be individually owned. However, since
fleet vehicles will drive
100,000 miles a year apiece,
they will contribute 95% of the
total miles driven in the U.S.,
while individuals will only contribute 5% of the miles. Also,
the total number of vehicles in
the U.S. will shrink by 80%, because individuals will stop buying cars for themselves and opt
for these services instead.
The day autonomous vehicles are approved, the per-mile
cost of autonomous electric vehicles will be one-tenth that of
a new car, because electric vehicles last 500,000 miles and
are being designed to last at
least 1 million miles. The cost
of operating autonomous electric vehicles will be as little as
one-quarter that of even a
paid-off gasoline car.
MR. ALSAADI: It is noteworthy
that autonomous electric vehicles are required for electric
vehicles to dominate. This
speaks to the fact that the current generation of electric vehicles can’t compete with invehicles
ternal-combustion
unless they are integrated with
a new business model. The
technology to offer such a
transportation model remains
experimental; the financial viability of such a business model,
assuming the technology matures, has yet to be proved; and
the cultural acceptance of such
a transportation model remains questionable.
The biggest obstacle for
electric vehicles’ wide adoption is their failure to address
an actual problem from the
driver’s point of view. Electric
vehicles have less range, lower
residual value, higher cost—
and this includes fuel cost—
slow charging time, and are
adversely impacted by cold or
hot weather, among other issues. In 1917, electric vehicles
represented 38% of the U.S. car
fleet; there is a reason why
they are at 1% today. Internalcombustion cars offer a moreviable transportation option.
Addressing a need
WSJ: Nawar, do you think elec-
tric vehicles will ever replace
those with internal-combustion
engines?
MR. ALSAADI: For something to
replace something else, it
needs to address an existing
deficiency, solve a problem or
at least offer the same service
at a lower cost. Electric vehicles fail on all these measures.
In a free-market dynamic, electric vehicles as they are have
no realistic chance of replacing
internal-combustion cars anytime soon.
A common argument by the
electric-vehicle camp is that
the price of electric vehicles,
especially the cost of the battery, will decline enough in 10
to 15 years to make them competitive with internal-combustion cars. The cost of the battery is 50% mechanical, hence
the decline in the price of the
battery including assembly will
not fall as quickly as for the
cells themselves. As electricvehicle sales increase, subsidies for electric vehicles will be
phased out. This will cancel
out if not eliminate totally the
reduction in battery prices
over the next 10 to 15 years.
Electric vehicles are unlikely to
be cost-competitive with internal-combustion cars in the
near to medium term.
Electric vehicles will still
need to address inherent problems with range, battery performance in cold/hot weather,
charging time and charging infrastructure. Having said that,
electric cars could and will
gain 5% to 15% market share in
the 2030s, mainly due to regulation, aspirational sales, innovation, and improvements in
cost and performance.
Internal-combustion-car
manufacturers are not ignoring
the threat. Innovation in fuel
efficiency and reduced pollution continue, enhancing internal combustion’s appeal and
longevity, as well as extending
the yardstick electric vehicles
must beat. I don’t see electric
vehicles replacing internalcombustion cars under any
reasonable time frame. However, the future is infinite, and
such switching may very well
take place beyond the 2050
time horizon.
MS. GORDON: I am all in favor
of electric vehicles, and I do
believe that their market is going to grow exponentially, especially with China and India
putting in new electric-vehicle
mandates and incentives, and
driving down the costs dramatically as a result.
However, replacing the current vehicle fleet with an electric-vehicle fleet—even if fewer
people are driving, as Tony
notes—is in large part a matter
of individual owner economics.
The majority of Americans
drive the cars they can afford,
and “affordability” is about upfront cost, not cost over the
period of ownership.
Americans are actually holding on to their cars longer
since the 2008 recession; in
fact, the share of cars 11 to 20
years old in the U.S. vehicle
fleet increased by 33% between
2008 and 2012. Those with
older cars often just let them
run down, and then buy from a
neighbor or friend.
The secondhand market will
increasingly include hybrids
and more-efficient cars, thanks
to fuel-economy standards, and
we’ll see the fleet slowly become more efficient and more
electric. But this won’t be a sea
change—especially in low-income rural areas, where people
are most dependent on their
vehicles today.
We don’t have a “free-market dynamic”—we have a world
in which countries with impressive economic and market
power, like China, have acknowledged climate change and
are mandating EV sales as a result. China combines that policy
push with the ability to manufacture at speed and scale.
China’s policy will push this
transition faster than it would
have otherwise happened.
and mainstream analysts made
when the first iPhone came out
in 2007: Why would anyone
want to buy a $600 smartphone when they can buy the
$100 Nokia? The smartphone
was a superior product with a
lot of functionality beyond
making a phone call. Electric
vehicles are similarly a superior product to internal-combustion vehicles.
The electric drive train is
superior in acceleration,
power, etc. The Tesla Model S
was named the Motor Trend
Car of the Year as far back as
2013. Consumer Reports
named it the best car ever
made. One-tenth the cost of
charging per mile, one-tenth
the cost of maintenance,
500,000-mile life vs. 140,000
to 200,000 for an internalcombustion vehicle. Some
electric-vehicle companies are
making the million-mile electric vehicle. You can charge
JEFF CHIU/ASSOCIATED PRESS
Will Electric Vehicles Replace Gas-Powered Ones?
Tesla’s Model S, shown in production in Fremont, Calif., was Motor Trend’s Car of the Year in 2013.
anywhere. You can charge your
house with your car or your
car with your house.
There are two ways in
which electric vehicles can/will
disrupt the market. No. 1: The
replacement of the internalcombustion vehicle by the
electric vehicle. By 2020, consumers will be able to buy an
electric vehicle with the performance of today’s Porsche
for 10% to 20% less than the
median new car in America. So
Please see EV page R6
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Policy Role
WSJ: Kate, how soon do you
think before we see electric vehicles replacing gas and diesel
vehicles?
MS. GORDON: I think electric vehicles will replace internal-combustion vehicles as new-vehicle
sales by maybe 2030. I think
the entire turnover of the fleet
won’t happen for at least another 10 years. Both will take
significant policy action, including regulation, which will be
subject to political whims.
MR. SEBA: Analysts today make
the same mistake that experts
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THE WALL STREET JOURNAL.
R6 | Tuesday, November 14, 2017
JOURNAL REPORT | BIG ISSUES
Will New Tariffs Hurt the U.S. Solar Industry?
YES
They Could Impede
Demand and Bring
Retaliatory Tariffs
BY JEFFREY BALL
SOLAR POWER is undergoing a stunning revolution,
plummeting in price and
surging in popularity. That
price drop is due partly to
technology, partly to government subsidies and
mostly to the efficiencies of
globalization. The surest way to encourage solar’s global growth is to let that globalization
proceed—not to block it with tariffs.
Tariffs already have hurt solar in the U.S.,
and more tariffs would do more damage.
The U.S. government has ruled repeatedly
that China’s solar manufacturers are selling
products in the U.S. at prices so low—made
possible by government subsidies so high—
that they violate trade rules. So, as global solar costs tumble, driven largely by manufacturing scale in China, the U.S. has built a tariff
wall against Chinese solar imports.
Now the Trump administration is set to decide whether to slap new tariffs on crystalline
solar cells and modules imported from
China—this time because U.S. trade officials
have concluded Chinese competition is significantly harming U.S. manufacturers. Though it
might seem politically expedient to pile on
more protectionist bricks, the economically
smart—and environmentally preferable—decision would be to tear down the wall.
Whether the tariffs are justified is a legal
question. But their practical effect is clear.
They’ve eroded U.S. solar manufacturing
where it used to be globally competitive: the
production of polysilicon, the building block
for solar cells. That’s because China, in response to the U.S. tariffs on Chinese cells and
modules, imposed tariffs on U.S. polysilicon.
U.S. makers of solar panels, Suniva Inc. and
SolarWorld Americas Inc., petitioned the
commission for tariff relief. Those companies
are hoping to avoid the fate of the many
U.S. producers of solar products that have
been driven out of business by low-cost imports from China, the world’s leading solar
Between 2010, before tariffs were imposed,
and 2017, the U.S. share of global production
of crystalline solar cells and modules, never
large, actually has fallen, to 0.8% from 2.2%
for cells and to 1.7% from 2.1% for modules,
according to data-analysis firm IHS Markit.
The U.S. share of global polysilicon output has
plummeted, to 11.3% from 29.1%.
Raising the tariffs could do more harm than
good. It could prod some foreign cell and
module makers to open U.S. plants. But it
could squeeze U.S. makers of other solar products—by inducing other countries to impose
retaliatory tariffs and, more fundamentally, by
raising solar-power prices for U.S. consumers,
impeding U.S. solar demand. That could crimp
both the sizable U.S. solar-installation industry and a promising clean-energy source.
U.S. solar policy shouldn’t seek to prop up
domestic manufacturing that wouldn’t be viable without tariffs. It should seek to make solar power—which has enjoyed juicy subsidies—cost-efficient for the U.S. and the world.
A Stanford University study of the global
solar industry that I led concluded earlier this
year that the U.S. can be a competitive solar
manufacturer—but only in certain segments of
the industry that leverage U.S. comparative
strengths, and assuming a still-prominent Chinese manufacturing role. Those areas include
products for U.S. use that are big or heavy,
making them expensive to import; products
for export that are energy-intensive to make
and thus benefit from cheap U.S. natural gas;
and the initial production of innovative new
products that leverage U.S. R&D excellence.
Some contend foreign solar manufacturing
imperils U.S. energy security. They’d do better
with this surgical strategy for an economically
sustainable U.S. solar industry than with the
blunt hammer of tariffs. Solar, now only about
1.5% of global electricity, will need deeper cost
cuts to become a truly meaningful energy
source. Tariffs don’t make solar cheaper. It’s
time for a smarter solar strategy.
Mr. Ball is scholar-in-residence at Stanford
University’s Steyer-Taylor Center for Energy
Policy and Finance, and the former environment editor of The Wall Street Journal. He
can be reached at reports@wsj.com.
Solar Powers
Soaking Up the Rays
Production of photovoltaic cells in selected
countries, in thousands of megawatts
Top solar photovoltaic markets by generating
capacity, in thousands of megawatts
2016
China
Taiwan
Malaysia
S. Korea
2010
2016
Japan
Germany
U.S.
0
10
20
30
40
50
Source: International Energy Agency, Trends 2016 in Photovoltaic
Applications; RTS Corp.
EVs
Continued from page R5
the electric vehicles will be
cheaper to buy, more powerful,
80% to 90% cheaper to fuel,
and 90% cheaper to maintain.
Electric vehicles will continue
to drop in cost so that by 2025
all new vehicles will be electric. This is a slower disruption because it’s a 1 to 1 substitution of the existing car fleet.
No. 2: The replacement of
car ownership by transport as
a service—individuals stop
buying new cars altogether,
both electric vehicles and internal combustion. In cost and
value, transport as a service is
dramatically better, leading to
a much faster disruption.
There are much more powerful
feedback loops here, and much
greater gains for individuals
and society that will accelerate
it. All these will cause policy
makers to enact new legislation that will accelerate the
disruption.
MR. ALSAADI: I have certainly
seen pro-electric-vehicle analysts mention smartphones as a
template for electric-vehicle
growth, yet I don’t see how this
is applicable to electric vehicles. Smartphones delivered a
superior product with more
functionality at a higher price
point to existing Nokia phones
at the time. Electric cars are offering an inferior product at a
superior price point. This is a
surefire formula for failure once
subsidies are removed.
If there is any disruption in
60
1
China
WSJ:
1
China
197.9
2
Japan
42.9
2
U.S.
112.2
U.S.
42.4
3
India
75.9
4
Germany
41.1
4
Japan
72.5
5
Italy
19.0
5
Germany
53.6
6
U.K.
11.5
6
Italy
22.5
7
India
9.5
7
U.K.
15.8
8
France
7.1
8
France
15.2
9
Australia
5.8
9
Australia
13.6
Spain
5.5
10
South Korea
12.1
Note: Projections for 2021 are based on the middle of three scenarios.
Source: SolarPower Europe
the market, it’s disruption by
pro-electric-vehicle regulation,
since regulation is forcing
electric vehicles on consumers
at a great cost to taxpayers.
I am not sure why it’s assumed that a transport-as-aservice fleet will be electric.
Car 2 Go, one of the most successful car-sharing services in
North America, eliminated
many electric cars from its
fleet in 2016 due to a number
of issues, including lack of infrastructure.
Regulation in countries such
as China will have a meaningful impact on electric-vehicle
adoption. Chinese electric-vehicle incentives have been subject to widespread abuse, thus
forcing the country to cut electric-vehicle subsidies, which
have had a notable impact on
the electric-vehicle sales
growth rate in 2017.
Nawar, We’ve seen
steady improvement in battery
costs and electric-vehicle
range. Does your timeline depend on those improvements
slowing or coming to an end?
MR. ALSAADI: I am taking into
account the potential decline
in battery cost. I am also assuming this will be offset to a
large extent by subsidy elimination. As for electric-vehicle
range, I do see improvement.
However, internal-combustion
cars’ efficiency will also improve during the same time
frame, thus undermining to
some extent cheaper electricity refueling cost.
Finally, I think we need to
U.S. from becoming totally dependent on imports to generate solar energy as this renewable fuel assumes a more important role in the
country’s overall energy supply.
Keep in mind that increased tariffs
wouldn’t be permanent: Under U.S. law, relief
can be provided for up to four years, with a
possible extension for another four years, but
whatever relief is granted must be phased out
over time according to a preset schedule.
While increasing tariffs on imports of solar
cells and modules might reduce consumption
somewhat in the U.S. from what might occur
absent tariff relief, concerns on this score are
almost certainly overblown.
First, modules are a small part of the total
cost of a solar installation. A Deutsche Bank
Markets Research paper estimates modules at
12% of total installation costs. That means even
hefty duties would have a relatively modest effect on the overall cost of solar power. Second,
overall costs continue to fall, so that even with
high tariffs on solar cells and modules, total
costs likely would remain below 2016 levels—a
year with the strongest growth in solar demand
and installation in the U.S. At those prices, solar
would remain competitive against alternatives
like natural gas, which has seen a big increase
in spot prices over the past two years.
The danger that higher tariffs on solar cells
and modules would prompt additional retaliatory Chinese tariffs on imports from the U.S.
of the polysilicon that cells are made from is
no reason not to proceed. The appropriate response to any Chinese action that violates international trade agreements is a legal challenge. Not acting because of such a threat is
simply letting a bully prevail.
The idea that economic efficiency dictates
that the production of solar cells and modules
should be left to China is similarly flawed.
Chinese producers are lower-cost only because
of massive state involvement. Given a level
playing field, the U.S. should be able to compete across the board in solar energy. Tariffs
are one way to level the playing field.
NO
They Level the
Playing Field and Aid
U.S. Manufacturers
BY TERENCE P. STEWART
THE U.S. SOLAR industry is
in deep trouble, plagued by
plant closings and bankruptcies that have sharply
reduced manufacturing capacity. Without additional
meaningful tariffs on imports of solar cells and
modules, solar manufacturing is in danger of
disappearing entirely in the U.S. That would
undermine the country’s energy security and
technological leadership, and eliminate jobs in
the industry itself and far beyond it.
If significant new tariffs are adopted, a host
of benefits can be expected. First, solar cell
and module manufacturers, and their suppliers,
in the U.S. will revive, given the ability to once
again sell their products at prices above costs.
Foreign makers of solar cells and modules
are also likely to set up manufacturing plants
in the U.S. if the tariff is high enough to make
production in this country economical for
them, creating many new jobs here. And solar
manufacturers in the U.S. will once again be
able to make significant investments in research and development—something an industry in survival mode can’t do.
The benefits wouldn’t be limited to the solar industry and its workers. A healthier, growing solar industry would increase tax revenue
for local and state governments as well as the
U.S. Treasury. It would also bring increased
sales of goods and services of all kinds to the
communities where manufacturing facilities
are located, as solar workers spend their
wages, and reduce costs to governments for
benefits and services for the unemployed.
Moreover, a viable domestic solar cell and
module manufacturing sector would keep the
Mr. Stewart is managing partner of the
Stewart & Stewart law offices in Washington, D.C., with 38 years of experience in
trade cases. Email him at reports@wsj.com.
2021
77.9
3
10
in the U.S. to grow.
But some critics say these tariffs would
have an entirely different outcome, damaging the broader solar industry in the U.S. by
raising prices for consumers and by encouraging the imposition of retaliatory tariffs
abroad on U.S. solar products.
manufacturer. President Trump has until
January to decide whether to act on the
commission’s recommendations, which also
include import quotas and a licensing fee.
Supporters say new tariffs on solar cells
and modules are needed to save the remaining U.S. manufacturers and allow production
THE WALL STREET JOURNAL.
be cautious about the gospel of
forever-lower battery prices.
Potential bottlenecks are also
appearing in regards to battery components, such as
Volkswagen’s failure to secure
sufficient cobalt supply for
their electric-vehicle plans.
These issues may be resolved or addressed at some
point, but they could slow or
reverse low battery-price trajectory for some time.
MR. SEBA: Battery costs have
been dropping faster than
most analysts expected. Lithium costs have more than doubled, but lithium-ion battery
costs have still dropped by
about 20% a year since 2010,
an even faster rate than before. Cobalt may become a bottleneck for those whose batteries use cobalt. But 80% of
China’s EV batteries use no cobalt. And those who do use cobalt are learning to use it more
efficiently. The increase in investments, R&D, learning
curve, economies of scale, and
so on will bring the cost of
batteries dramatically down.
MS. GORDON: Tony, how do you
deal with culture? The bestselling vehicle in the world is
the Ford F150 truck; it has
been the best-selling in America for years.
MR. SEBA: Electric vehicles are
far more powerful than internal-combustion-engine vehicles (while being far cheaper
to maintain and fuel). Whenever the market delivers an
electric competitor to the
F-150, it will disrupt that market. Trucking will likely un-
FRED JOE/SOLARWORLD
Last month, the U.S. International Trade
Commission recommended that President
Trump implement new tariffs on imported
solar cells and modules. Cells are the components of solar modules, or panels, that
produce electricity.
The recommendation was made after two
A robot helps produce solar panels in a SolarWorld Americas factory in Hillsboro, Ore. The
company recently petitioned U.S. trade officials for tariffs on imported panels.
dergo a faster disruption than
cars. While many people associate trucking with long distance, more than half the
freight in the U.S. is driven
less than 100 miles, and 71%
travels less than 250 miles.
Electric trucks with 100mile range are approaching the
upfront purchase price of their
internal-combustion-engine
peers. Given the order-of-magnitude savings in energy (and
maintenance) of electric trucks
vs. internal-combustion-engine
trucks, these savings alone
would justify a wholesale conversion of fleets. The electrictruck disruption of internalcombustion-engine trucks will
start sooner and have a faster
adoption curve than the mainstream anticipates.
MS. GORDON: The point isn’t
that electric vehicles are/can
be stronger and more effective. It’s that there’s a cultural
bias that plays into car ownership. People don’t always make
ownership decisions rationally.
I agree partially about
larger vehicles. Fleet vehicles
will transition sooner because
they’re under the control of a
single owner, usually turned
over quickly and go short distances. I’m less confident
about heavy-duty trucks,
which may go to hydrogen or
another technology rather
than electric because of battery size/weight issues.
Mr. Totty, a former news
editor for The Journal Report
in San Francisco, can be
reached at reports@wsj.com.
Power Drive
The number of electric cars
world-wide
1,400 thousand
Electric cars by country, 2016
(2 million total)
32%
China
28
U.S.
1,200
1,000
800
600
Battery
electric
vehicles
Japan
Norway
7
Plug-in
hybrids
Netherlands
6
400
9.4
200
8
U.K.
4
France
4
Germany
4
1
Canada
0.04
0
2010 ’11 ’12 ’13 ’14 ’15 ’16
7
Other
A Place to Plug In
Publicly available charging stations by country, 2016
Public slow chargers
(212,000 outlets total)
25%
China
17
U.S.
Japan
8
Germany
8
France
7
9%
5
Norway
3
Canada
2
Other
China
81%
12
Netherlands
U.K.
Public fast chargers
(110,000 outlets total)
Other
13
Japan | 5%
U.S. | 5%
Source: International Energy Agency,
Global EV Outlook 2017
THE WALL STREET JOURNAL.
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